Treasuries Bounce Back
Treasuries bounced back sharply from losses over the past two days on Thursday, as a big downward revision to September new home sales and higher weekly jobless claims drove concerns over the outlook for the economy. These points overshadowed an upward revision to Q3 GDP that met expectations. 10-year note rallied 26/32 to 102-26/32 for a yield of 4.94%. 30-year bond surged 46/32 to 110-25/32 for a yield of 4.35%. Bond price strength also reflected ongoing concerns over tightening credit, and sentiment that the stock market rally yesterday was caused by short covering rather than any improvement in the fundamental picture for the economy.