Drop In Jobless Claims Pull Treasury Prices Down

Published January 19, 2012 8:45PM (EST)

A drop in applications for unemployment benefits is pushing U.S. Treasury prices down in late afternoon trading.

The Labor Department said Thursday that the number of people applying for unemployment benefits sank to 352,000. That's much lower than economists expected and the lowest level since April 2008, before the worst days of the financial crisis.

The price on the 10-year Treasury note fell 71.8 cents for every $100 invested. That pushed its yield up to 1.98 percent from 1.90 percent late Wednesday.

Signs of a stronger economy tend to send traders out of low-risk Treasurys, which causes their yields to rise. The price of the 30-year Treasury bond fell $1.65 per $100 invested, lifting its yield to 3.04 percent from 2.95 percent late Wednesday.

By Salon Staff

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