August 12th, 2010
06:09 PM ET

Dollar advances on global slowdown fears

Treasurys retreat as stocks firm
Treasurys fell Thursday as the government completed the last of three auctions this week totaling $74 billion and a recovery in the stock market undermined demand for the safety of U.S. debt.

"We had a large swing in the equity market and the Treasury market is waning a bit," said Dan Greenhaus, chief economic and bond strategist at Miller, Tabak and Co.

As prices fell, the yield on the 10-year rose to 2.75 percent from 2.62 percent late Wednesday. The yield on the 2-year note rose to 0.55 percent after falling to a record low in the previous session.

The yield on the 30-year bond rose to 3.95% after the government sold $16 billion worth of the securities. The median yield at Wednesday's auction was 3.89 percent.

Stocks pare some losses but end lower 
Stocks closed modestly lower Thursday but recouped earlier losses, as investors digested an unexpected rise in jobless claims and Cisco Systems' cautious outlook.

The Dow Jones industrial average lost 59 points, or 0.6 percent, to end at 10,319.95.

The S&P 500 fell 6 points, or 0.5 percent, to end at 1,083.61, and the Nasdaq dropped 18 points, or 0.8 percent, to settle at 2,190.27.

Earlier in the session, the blue-chip Dow index sank as much as 110 points. But as the day wore on, all three indexes rebounded somewhat off their lows.

Dollar advances on global slowdown fears 
The dollar turned higher this week as jittery investors flocked to the greenback for its safe-haven appeal amid fears of a global economic slowdown.

For weeks, the dollar had been slipping as investors focused on weak U.S. economic news and improvements abroad. It is now making a comeback as disappointing news out of other regions join center stage. 

Bleak outlooks from central banks in Europe, as well as signs of slower growth out of China, have rattled investors and boosted their demand for low-risk investments, including the dollar. 

Softer risk appetite has pushed dollar up to a three-week high against the euro - below $1.28 - and the highest level this month against the pound. The dollar index, which tracks the buck against several major rivals, has climbed 3 percent this week. reporters Ben Rooney, Julianne Pepitone and Hibah Yousuf contributed to this report.

Filed under: Business • Economy
soundoff (2 Responses)
  1. amy jones

    About government jobs vers private jobs for government. I am a Contractor at Fort Lee, VA. I make 6.00 dollars more than the Civial Service Workers where I work. I am not understanding why they say Federal Empolyees make more.

    August 12, 2010 at 6:22 pm | Report abuse |
  2. reaper

    August 13, 2010 at 11:06 pm | Report abuse |