Treasury Bonds Fall On Strong Economic Data, Thursday, July 05, 2007 3:30:49 PM
Treasury bonds dropped sharply on Thursday, as indications of stronger-than-expected employment growth prompted fears about inflation. This came as an industry jobs survey came in above expectations and a report about the country`s services sector pointed to accelerated growth. With the move, the 10-year yield moved back above the 5.1% mark.With traders returning to work after the July Fourth holiday, treasuries dropped at the outset of the session. Payroll processing firm ADP announced the results of its employment survey during the morning. The numbers were above expectations, leading many to expect higher-than-projected results from Friday`s government data.
The advance continued during the mid-morning following the release of an industry report about the country`s services sector. That report also pointed to stronger-than-expected growth, further encouraging fears about inflation.
The yield on the benchmark 10-year note eventually finished at 5.144%. On Monday, the 10-year yield closed below 5% for the first time in nearly a month.
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posted by Kalin Tasev @ 1:44 PM
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