Treasury Prices Move Higher
MARKETSCOPE : The weaker than expected second quarter GDP report was driving bonds higher on Friday, on the perception the Fed will notraise rates at its Aug. 8 meeting, notes Roger Volz of Swiss American in New York. The 10-year Treasury yield fell to 5.00% on belief the GDP slowdown to 2.5% from 5.6% overshadows the fact the price index rose at a 3.3% pace, the sameas in the first quarter, which was revised from 3.1%, and the core PCE deflator rose 2.9%, up from 2.1% in Q1, which revised from 2.0%. Traders were also ignoring a report the Q2 ECI rose 0.9%.
The 2-year note was up 02/32 to 99-31/32 for a yield of 5.021%, while the 30 year bond was up16/32 to 91-09/32 for yield of 5.072%.