Treasury Bonds Fall
MARKETSCOPE : Treasury bond values were falling on Friday, as investors weighed positive economic growth news against worries about the investigation that led to Lewis Libby's indictment.
The 10-year Treasury was down 11/32 to 97-09/32 to 4.599% yield, while the 2-year note was down 03/32 to 99-24/32 for yield of 4.398%. The 30-year bond was down 20/32 to 108-09/32 for yield of 4.809%.
The release of the third quarter Gross Domestic Product showed it rising more than the expected 3.8%, while third quarter Employment Costs rose 0.6% as expected.
Vice President Cheney's top aide Lewis Libby received an indictment on obstruction of justice and perjury charges. Investors continued waiting for more information about the grand jury investigation of the leak of a covert Central Intelligence Agency operative's identity. President George W. Bush's top political adviser, Karl Rove, is not to be among those indicted Friday, although Special Counsel Patrick Fitzgerald has indicated Rove will remain under investigation and in legal jeopardy.
Meanwhile investors continued making bets on how the Federal Open Market Committee will move on lending rates when it meets next week.