MW: Treasurys hold gains after U.S. productivity data
By Greg Morcroft, MarketWatch
NEW YORK (MarketWatch) — U.S. Treasurys held to early gains after the U.S. reported that economic productivity grew 1.6% in the second quarter, and ahead of a 10-year note auction.
Yields on the 10-year note 10_YEAR -0.86% , which move inversely to price, fell less than 1 basis point to 1.62%. Yields on the 2-year note 2_YEAR +2.94% were flat at 0.28%.
U.S. productivity rose at a modest 1.6% clip in the second quarter, the government reported Wednesday, as output of goods and services rose much faster than the amount of time employees worked. Economists surveyed by MarketWatch expected productivity to climb by 1.3%. Read more on productivity.
Treasurys had fallen last week as stocks gained on confidence in corporate profits and expectations of more stimulus. But that appetite waned on Wednesday, sending the S&P 500 SPX -0.22% off 3 points to 1,398.
At 1 p.m., the U.S. Treasury will release auction results from a $24 billion sale of 10-year notes. Tuesday’s 3-year note sale showed weaker demand than in past auctions, partially due to a recent shift away from safe-haven U.S. government debt.
Greg Morcroft is MarketWatch's financial editor in New York.
