Treasuries gained after a Federal Reserve report showed New York manufacturing
unexpectedly contracted this month. The price of the 3 7/8 percent security due in May
2018 rose about 1/8, or $1.25 per $1,000 face amount, to 99 25/32. The New York
Fed's general economic index was minus 3.2 in May, after a 0.6 reading in April. The
median forecast in a Bloomberg survey was for the index to be flat. The index was
negative in February and March, signaling contraction. Initial jobless claims rose to
371,000 in the past week from 365,000 the week before, a government report showed
separately. Foreign buying of U.S. financial assets probably rose for a second month
in March, a Treasury Department report may show at 9 a.m. New York time. Output at
manufacturers, mines and utilities probably fell 0.3 percent in April after rising 0.3
percent in March, according to the median forecast in a Bloomberg News survey. The
Fed releases the report at 9:15 a.m. New York time. The market is .25 to .5 better in
discount this morning.
Comments(0)