Reuters: Market News: TREASURIES-Bonds firm as income data spur growth worries

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TREASURIES-Bonds firm as income data spur growth worries Mar 30th 2012, 13:31 Tweet Share this Email Print Related Topics Bonds News » Bonds » Markets » Fri Mar 30, 2012 9:31am EDT By Richard Leong NEW YORK, March 30 (Reuters) - U.S. government debt prices rose on Friday as news of sluggish income growth kindled worries about the longer-term prospects for U.S. economic health, despite robust consumer spending early in 2012. Government data also showed the underlying inflation trend remained tame despite the surge in gasoline prices, spurring a bid for longer-dated Treasuries. "Stronger spending, while unsustainable, is good for near-term growth. Weaker incomes could suggest a weakening payroll trend and the fact that spending-fuel led growth is unlikely to last as the savings rate declines sharply," said Gennadiy Goldberg, fixed income strategist at 4Cast Ltd in New York. Personal income grew 0.2 percent in February, half the 0.4 percent increase predicted by economists, while personal spending jumped 0.8 percent last month, the biggest monthly increase since July. Analysts said much of that spending seemed driven by savings. In early trading, the benchmark 10-year Treasury note was up 1/32 in price, its yield easing to 2.15 percent, down 0.6 basis point from late on Thursday. The 30-year bond was up 7/32 for a 3.26 percent yield, down 1 basis point from Thursday's close. Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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