August 13th, 2010
09:17 PM ET

Slow summer months boost appeal for treasurys

A look at the day's business news.

Stocks end lower for 4th straight day 
 
Stocks ended lower Friday, the fourth consecutive day of declines, as investors digested dour economic reports in the retail and consumer sectors.

The Dow Jones industrial average fell 17 points, or 0.2 percent, to end at 10,303.15. The S&P 500 lost 4 points, or 0.4 percent, to settle at 1,079.25 and the Nasdaq fell 17 points, or 0.8 percent to close at 2,173.48.

All three indexes had been trading on either side of breakeven in morning trade.

"It's low-volume season, also known as August," said Kim Caughey, senior equity analyst at Fort Pitt Capital Group. "Traders are on vacation, and we get some pretty crazy reactions - or lack of reactions - because of that."

10-year yield nears 16-month low 
 
The 10-year yield hovered near a 16-month low on Friday as worries about an economic slowdown lingered and investors remained cautious going into the weekend.

Demand for safe-haven Treasurys dragged the yield on the benchmark 10-year note to 2.69 percent Friday from 2.75 percent late Thursday. Bond prices and yields move in opposite directions.

Friday's level was approaching the low hit earlier this week of 2.68 percent, the lowest level since mid-April 2009, said Bill Larkin, portfolio manager at
Cabot Money Management. Meanwhile, the yield on the 30-year bond fell to 3.88 percent from 3.95 percent, while the yield on the 2-year note slipped to 0.54 percent from 0.55 percent late Thursday.

Struggling stocks, lackluster economic data and fears of a slowing economic recovery all boosted the appeal of Treasurys on Friday.

CNNMoney.com reporters Blake Ellis and Julianne Pepitone contributed to this report.

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  1. reaper

    [youtube=https://www.youtube.com/watch?v=bUkcjAtzzcI&w=640&h=360]

    August 13, 2010 at 10:57 pm | Report abuse |