Interest rates slide after economic worries mount
NEW YORK — interest rates fell in the bond market Friday after the government said the economy grew at a slower pace in the first quarter than previously estimated.
The downward revision raised concerns that the recovery is slowing. The Commerce Department said the economy grew at an annual rate of 2.7 percent in the first quarter, slower than the 3 percent rate it had reported last month. The report indicated that consumers cut back on spending and that imports increased faster than it had estimated.
The price of the 10-year Treasury note maturing in May 2020 rose 25 cents per $100 in face value to $103.25. its yield fell to 3.11 percent from 3.14 percent Thursday.
Other disappointing reports on the economy since last week have driven up demand for the safety of government debt. that has pushed down interest rates. On Thursday, the 10-year yield note fell to 3.07 percent, its lowest level since May 2009.
Stocks mostly rose Friday after bank stocks jumped on relief that an overhaul of financial regulations in Washington likely wouldn’t strip banks of the ability to make money from complex financial trades known as derivatives. More broadly, there was relief that investors finally had some answers on how banks would be regulated. The Dow Jones industrial average slipped 9 points but broader indexes rose.
In other trading, the yield on the 30-year Treasury bond maturing in May 2040 fell to 4.06 percent from 4.11 percent. its price rose 78.125 cents to $105.34375.
The yield on the two-year note that matures in May 2012 fell to 0.66 percent from 0.69 percent. The price rose 6.25 cents to $99.9375.
The yield on the three-month Treasury bill maturing on Sept. 16 was flat at 0.12 percent. its discount rate was 0.13 percent.
Interest rates slide after economic worries mount
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Tags: banks, commerce department, consumers, economy, trades, year treasury note
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