Treasurys mixed on promising economic readings

From Google.com

NEW YORK (AP) — Treasurys ended mixed Wednesday after more data indicated that the economy might be nearing a recovery.

Treasurys had been rising earlier this week as investors sold off stocks and flocked to safer investments. But Wednesday's positive economic news helped stocks stage a rebound and encouraged some investors to halt their Treasury buying.

An index of New York manufacturing activity showed that activity has been contracting at a slower pace in April than expected. Also, the National Association of Home Builders said homebuilder optimism in April logged the biggest monthly gain in five years, while the Federal Reserve said five of its 12 regions reported moderation in the rate of economic decline.

Still, the movements in the bond market were modest, as investor demand for government debt remains high. Treasury data released Wednesday on total U.S. debt purchases in February showed a rise of $26 billion, compared to a decline of $13 billion in January.

The benchmark 10-year Treasury note rose 6/32 to 99 27/32. Its yield fell to 2.77 percent from 2.79 percent late Tuesday.

The 30-year bond fell 2/32 to 97 2/32, and its yield was unchanged at 3.66 percent.

The two-year note was flat at 100 1/32, and its yield was unchanged at 0.86 percent.

The yield on the three-month Treasury bill fell to 0.14 percent from 0.16 percent. The discount rate was 0.15 percent.

The cost of borrowing between banks fell. The London Interbank Offered Rate, or Libor, on three-month loans in dollars edged down by 0.01 percentage points to 1.11 percent. The equivalent rate for three-month loans in euros dropped 0.01 percentage points to a record low of 1.41 percent.