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Treasurys rise after poor retail sales

Treasurys rise after poor retail sales

Treasury prices rose Wednesday, sending yields tumbling, after the U.S. government reported a sharper-than-expected drop in retail sales.
The Commerce Department said retail sales slumped 2.7 percent in December. That decrease was more than double the average analyst forecast, and sent investors clamoring for the safety of government debt instead of stocks.
As the Dow Jones industrial average fell 248 points, the benchmark 10-year Treasury note rose 29/32 to 113 20/32, and its yield fell to 2.20 percent from 2.30 percent. Yields move opposite to prices.
The two-year note rose 2/32 to 100 9/32, and its yield fell to 0.72 percent from 0.75 percent. The 30-year bond rose 2 23/32 to 131 28/32, and its yield fell to 2.88 percent from 3.00 percent.
The yield on the three-month Treasury bill _ considered an extremely safe short-term investment _ was unchanged at 0.10 percent. The discount rate was 0.11 percent.
In positive news, the cost of three-month dollar loans between banks fell further on Wednesday _ a sign that financial institutions are more willing to lend to one another. But the rate of decline was small amid mounting concerns that some of the world's leading banks may have to raise new capital.
The interbank lending rate on three-month loans in dollars _ known as the London Interbank Offered Rate, or Libor _ fell around 0.01 percentage points to 1.08 percent, its lowest level since June 2003, according to the British Bankers' Association.


Updated : 2021-08-03 21:22 GMT+08:00