Treasurys Prices Continue to Climb on Weakness In the Stock Market, Signs of a Slowing Economy
NEW YORK -- A plunge in stock prices helped lift Treasurys prices moderately. But traders said bond-market activity was muted as many people pared back trading positions well ahead of Thursday's Thanksgiving Day holiday in the U.S.</br></br>Late yesterday, the benchmark 10-year Treasury note was up 7/32 point, or $2.19 per $1,000 face value, at 100 16/32. Its yield fell to 5.664% from 5.694% late Friday, as yields move inversely to prices.</br></br>Meanwhile, the 30-year Treasury bond's price was up 9/32 at 106 28/32 to yield 5.752%, down from 5.773% Friday.</br></br>There weren't any major economic indicators during the session, and that left the bond market to focus primarily on the weakness in stocks. The Nasdaq Composition Index plummeted 151.44 points to 2875.75, while the Dow Jones Industrial Average sank 167.22 points to 10462.65.</br></br>When stock prices fall sharply, investors often move funds to the relative safety of government securities. Some of the gains yesterday in Treasurys reflected such shifts, although a portion of the market's movement stemmed only from anticipation that investors would move to bonds from stocks.