NEW YORK (AP) — Interest rates fell in the Treasury market again Thursday as more downbeat signs emerged on the U.S. economy.
The yield on the 10-year Treasury note fell back to just below 3 percent. The yield helps sets rates on mortgages and other consumer loans.
Reports showing slowing manufacturing activity added to investors’ growing pessimism about the economy.
Sharp drops in the Empire State and Philadelphia Fed Manufacturing indexes pointed to a slowing in manufacturing activity in the Northeast. Meanwhile, the Fed reported modest growth in industrial output nationwide.
Treasury prices extending their gains Thursday from the day before, when the Federal Reserve trimmed its forecast for economic growth.
The 10-year note maturing in May 2020 was yielding just under 3 percent in late trading, down from 3.05 percent the day before. Its price rose 40.625 cents to $104.25.
In other trading, the two-year Treasury note was yielding 0.62 percent versus 0.61 percent Wednesday. Its price was essentially flat.
The 30-year bond was yielding 3.99 percent, down from 4.03 percent the day before. Its price rose 75 cents to $100.719.
The yield on the three-month Treasury bill was unchanged at 0.14 percent. Its discount was 0.15 percent.