U.S. Treasuries trim losses on weak Phila Fed data
[once more, economists dead wrong, economy slowing]
NEW YORK, Aug 15 (Reuters) - U.S. Treasury prices trimmed sharp losses on Thursday after a Federal Reserve Bank of Philadelphia report said manufacturing in the mid-Atlantic region contracted in August, raising new concerns about the economy's health.
Stock indexes sank sharply from early peaks, also giving shorter-dated Treasury securities, often used as a safe haven for investors to park their investments, a lift.
The Federal Reserve Bank of Philadelphia said its business conditions index fell unexpectedly to -3.1 in August from 6.6 in July, bucking Wall Street expectations for a rise to 7.2. The new orders index also fell, to -2.7 in August from 6.6, suggesting weak performance ahead.
"It probably caught everyone off guard," said Sharon Stark, head of fixed-income strategy at Legg Mason in Baltimore. "Clearly it would suggest we have hit a stall in the manufacturing sector."
Benchmark 10-year notes were down 13/32 to 101-20/32, pushing their yield up to 4.17 percent, but down off highs seen before the data were released. The Dow Jones industrial average (CBOT:^DJI - News) was up 0.35 percent, off its highs, and the S&P 500 (CBOE:^SPX - News) was up 0.6 percent. |
