NEW YORK: US 30-year Treasury bonds pared their earlier price gains on Wednesday after a report on durable goods suggested that US economy has not slowed as much as some traders had feared.
The US Commerce Department said overall durable goods orders slipped 0.1 percent in August, slightly weaker than what economists had forecast.
But last month's demand for non-defense capital orders excluding aircrafts, which economists consider a proxy of consumer spending, jumped 1.1 percent, above a 0.3 percent increase predicted by economists.
The 30-year bond was last up 12/32 in price for a yield of 1.98 percent. Its price gain was briefly shaved to 3/32 after the latest durables goods data.
Copyright Reuters, 2011
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