Treasury prices fell Friday in a fitting end to the worst month for the haven government debt since December 2010, as investors nervously watch for potential changes to central bank monetary policy.
The 10-year note 10_YEAR 0.00% yield, which moves inversely to price, rose 3 basis points on the day to 2.139%, capping a 46 basis point rise over five consecutive weeks since the beginning of May. The 10-year yield rests for the weekend at its highest point since April 2012.
The 30-year bond 30_YEAR 0.00% yield rose 1.5 basis points to 3.284%, and the 5-year note 5_YEAR 0.00% yield rose 2 basis points to 1.035%.
Friday’s swing lower in prices illustrates the increased volatility in the bond market, with investors taking each economic data reading as indication of how and when the Federal Reserve may act to wind down, or taper, its bond purchase program, which has held yields at artificially low levels.
It’s time to become wary of stock prices.
A pre-existing condition health insurance program established by Obamacare is already straining its own budget and, to control costs, the administration’s Health and Human Services Department (HHS) has stopped enrolling any new people in the program, according to an audit by the General Accountability Office (GAO).
