Snow blankets northern Saudi region of Al-Jouf    Syrian Air to resume operation between Damascus and Jeddah on Nov. 7 after a hiatus of 8 years    21,370 illegal residents arrested in a week    Bronze Age town discovered in Khaybar Oasis    New mechanism for reviewing taxi fares via applications    Harris and Trump in dead heat as Election Day nears    Spain flooding one of many global extreme weather disasters: UN weather agency    EU braces for potential shifts in transatlantic relations ahead of US presidential election    Israeli army nearing end of ground offensive in southern Lebanon, reports indicate    Al Hilal sets record for longest unbeaten streak across all domestic competitions    Al Nassr and Al Hilal share points in intense Riyadh Derby draw    Riyadh's Sports Boulevard receives Platinum ActiveScore certifications    ImpaQ: Riyadh to host first Impact Makers Forum in December    Saudi Arabia ranks 12th globally in international visitor spending in 2023    Hidden sugars in Asia's baby food spark concerns    Saleh Al Shehri strike seals Al Ittihad's Sea Derby win over Al Ahli    HONOR unveils pre-order of the stunning HONOR MagicBook Art 14 Featuring an ultra-slim design, HONOR Eye Comfort Display and AI Cross-OS WorkStation    Derby Week makes its debut in the Roshn Saudi League    Teri Garr, Young Frankenstein and Tootsie star, dies at 79    Indonesia Days event celebrates cultural diversity at Al Suwaidi Park    India puts blockbuster Pakistani film on hold    The Vikings and the Islamic world    Filipino pilgrim's incredible evolution from an enemy of Islam to its staunch advocate    Muted Eid celebrations for millions of Nigerian Muslims    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Treasury bond prices fall, dollar rises after strong jobs
Published in Saudi Press Agency on 06 - 04 - 2007


U.S. Treasury bond prices tumbled in a
holiday-shortened session Friday after the unemployment
rate fell to a five-month low, signaling that the economy
could be stronger than expected.
The yield on the benchmark 10-year Treasury note surged to
4.76 percent from 4.68 percent late Thursday. Yields move
in the opposite direction of bond prices. The bond market
closed at 11 a.m. EDT for Good Friday; stock and many other
financial markets were closed Friday, according to AP
Word that the nation's unemployment rate fell to 4.4
percent in March rather than rose to 4.6 percent as
expected sent the dollar higher. Foreign exchange investors
welcomed news that perhaps the economy is more robust than
they had thought for much of this year. The dollar rose to
119.31 yen from 118.68 yen late Thursday while the euro
slipped to $1.3372 from $1.3427.
«Clearly, versus the consensus number this was a
surprise, particularly for those in the camp that the
economy is falling off the face of the earth,» said Robert
F. Auwaerter, head of fixed income portfolio management at
Vanguard Group.
«It clearly indicates a Fed that is on hold but is
worried about inflation,» he said of the Federal Reserve,
which has left short-term interest rates unchanged at its
past six meetings as it tries to quell inflation without
denting economic growth.
Auwaerter, who noted that Friday's moves in the bond
market were likely exaggerated by thin holiday trading,
also said his assessment of the economy hadn't been as dour
as that of some investors.
«It'll be very interesting to see what happens Monday _
whether other investors throw in the towel.»
Auwaerter said wage growth figures reported Friday might
trouble the inflation-wary Fed.
«They don't mind wages going up so long as you see
productivity gains going up,» he said, speculating that
first-quarter productivity growth will be weak as will a
reading of the nation's gross domestic product, the
broadest measure of the economy.
As consumer spending accounts for two-thirds of economic
activity, investors are eager for consumers to continue to
ring up purchases to help shepherd the economy to a
so-called soft landing. But a jump in wage pressures could
keep inflation higher and prevent the Fed from lowering
interest rates.
The Fed stopped raising interest rates in August, breaking
a string of 17 straight increases that began in 2004 as it
moved to curb inflation.
Despite any concerns about inflation, Friday's report
would likely be viewed as welcome news for the economy by
stock market investors. The Labor Department reported that
employers increased their payrolls by 180,000 in March, the
largest increase since December. Wall Street had been
expecting an addition of about 135,000 jobs.
Construction companies added jobs in March after cutting
back in the prior month in part because of poor weather.
Concerns about an unraveling of the housing sector have
dogged investors in 2007. Recent troubles among so-called
subprime lenders, which make loans to people with poor
credit, have added to unease about the fate of consumers.
Also Friday, the Commerce Department said U.S. wholesale
inventories rose in February as expected while sales
increased. Wholesale inventories climbed 0.5 percent to a
seasonally adjusted $392.43 billion (¤293.45 billion)
compared with a revised 0.6 percent increase for January.
The initial January increase was pegged at 0.7 percent.
Wholesale sales rose 1.2 percent in February after falling
0.9 percent in January.
While most of the world's stocks markets were closed for
Good Friday or local holidays, Japan's Nikkei stock average
closed down 0.04 percent Friday. The sometimes-volatile
Shanghai Composite Index rose 0.13 percent to its
fifth-straight record close. It was a nearly 9 percent drop
in the Shanghai Composite Index on Feb. 27 that helped
touch off a global sell-off. Major U.S. stock indexes lost
more than 3 percent that day, though they have recently
rebounded.
-- SPA


Clic here to read the story from its source.