14 July 2005, 17:09  Treasury prices rise after tame CPI report

Treasury prices rose early Thursday, sending yields lower, after consumer price data showing tame inflation and a stronger-than-expected monthly retail sales report. The bond market cheers tame inflation because it does not eat into the value of fixed-income instruments. The Labor Department said consumer prices in June were unchanged, as energy prices actually fell; economists had expected consumer prices to rise 0.2%. Separately, the Commerce Department reported a 1.7% increase in retail sales for June, helped by a 4.8% rise in auto sales; economists had expected a 1% rise. The yield on the benchmark 10-year Treasury note dropped to 4.134% from 4.169% before the reports.

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