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Dip in jobless claims knocks Treasury down
Posted: Aug 11, 2011 1:46 PM by Matt Stafford
Updated: Aug 11, 2011 3:14 PM
NEW YORK (AP) - Treasury prices are falling after the government reported a drop in unemployment claims.
The Labor Department said Thursday that first-time claims for unemployment benefits dipped below 400,000 last week for the first time in four months.
In afternoon trading, the 10-year Treasury is down $1.43 for every $100 invested. The drop in price raised the yield to 2.31 percent, up from 2.11 percent late Wednesday.
Sharp movements in the Treasury market helped make for a messy government bond auction Thursday. The Treasury sold $16 billion in 30-year Treasurys at a 3.75 percent yield. Investors placed bids for 2.08 times the amount up for sale, the weakest show of demand since February 2009. But it's also the lowest borrowing rate for a 30-year auction since March 2009.
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