TREASURIES-Prices rise after consumer sentiment index
(Updates with reaction to consumer confidence report)
NEW YORK, Sept 11 (Reuters) - U.S. Treasuries prices added to early gains on Friday after the Reuters/University of Michigan consumer sentiment survey showed one-year inflation expectations fell in early September, even as the overall preliminary sentiment index came in higher than expected.
Benchmark 10-year notes US10YT=RR, which were up 5/32 in price before the report came out, rose to an 8/32 gain, yielding 3.33 percent versus 3.36 percent on Thursday.
The U.S. consumer sentiment survey rose to 70.2, the highest since June, from 65.7 in August. That topped a median forecast from economists of 67.3, according to a Reuters poll.
However, one-year expectations for inflation fell to their lowest since March. The survey gives some indication of how much unemployment and other factors impinging on consumers' financial well-being could affect their willingness to spend. (Editing by James Dalgleish)
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