Bonds Up - Interest Rates Down on Better than Expected Core CPI Report
NEW YORK (MarketWatch) -- Treasury bond prices closed higher Tuesday, sending yields lower, after news that consumer prices -- excluding food and energy -- rose less than expected in March, soothing some of the inflation concerns that have pressured bonds recently.
Treasury prices also benefited from news of a larger-than-expected decline in output at the nation's factories last month. Signs of economic weakness also stoke demand for low-risk instruments like Treasurys.
The benchmark 10-year note rose 12/32 to close at 99 18/32, yielding 4.686%.
The 30-year long bond shot up 21/32 to 98-15/32 with a yield of 4.847%.
The 2-year note gained 3/32 to 99-21/32 with a 4.681% yield.