Treasury Yields Hit New Record Lows
Author: Deborah Lynn Blumberg</br></br>NEW YORK--Most Treasury prices rose, leaving the market with a weekly gain, after a bleak U.S. jobs report that added to investors' already lofty expectations that the Federal Reserve will have to lend more support to the economy this year.</br></br>The two- and five-year yields fell to record lows once again in the wake of the report, which showed the economy lost 95,000 jobs last month, to 0.335% and 1.070%, respectively. The 10-year yield slipped to a yearly low as well, to 2.332%, a level last seen in January 2009. The 10-year yield hit an all-time low of 2.037% in December 2008. Yields and prices move inversely.</br></br>Treasurys gained as the data confirmed for many that the Fed will have to launch another quantitative-easing program involving large-scale bond buying this year to keep the economy from slipping back into a recession. Many believe that buying will take Treasury yields lower still, with the 10-year possibly hitting 2%.</br></br>The report "gives us no reason to argue a slowing of the QE2 train based on the data," said John Briggs, U.S. interest rate strategist at RBS. "Akin to the overall growth picture, today's data was 'just not good enough,'" Briggs said.