US Treasuries hold firm despite strong Chicago PMI
Thu Mar 31, 2005 10:16 AM ET
NEW YORK, March 31 (Reuters) - Treasury debt prices held onto early gains on Thursday even though a survey of regional U.S. manufacturing proved surprisingly strong, balancing relief from muted inflation figures.
The National Association of Purchasing Management-Chicago business barometer leaped to 69.2 in March from 62.7 in February, confounding analysts who had looked for a dip to 61.0. The breakdown was also strong, with new orders jumping too, although prices paid declined a little.
The employment index shot to 66.0 from 57.7 in February, a startling result which could revive speculation of a very strong rise in the March U.S. payrolls report, due Friday.
Nevertheless, after dipping immediately on the figures, bonds quickly found buyers and the benchmark 10-year note (US10YT=RR: Quote, Profile, Research) was up 10/32 in price, lowering yields to 4.51 percent from 4.55 percent.