News & Announcements 4/30/2008 8:15 AM

MARKET COMMENTARY
Treasuries rose after government reports showed measures of inflation were tamer than economists had forecast.
The U.S. economy expanded at a 0.6 percent annual pace in the three months through March, the Commerce Department said. The median forecast of economists in a Bloomberg News survey was for a 0.5 percent increase. The report's price index rose 2.6 percent, less than the median forecast of a 3 percent increase. A measure of labor costs rose 0.7 percent, the least in a year.
The two-year note yield fell 2 basis points, or 0.02 percentage point, to 2.34 percent as of 8:43 a.m. in New York, according to BGCantor Market Data. The price of the 2 1/8 percent security due in April 2010 was little changed at 99 18/32. The 10-year note yield fell 2 basis points to 3.80 percent.
Two-year Treasuries fell earlier after a report showed companies in the U.S. unexpectedly added jobs in April. The increase of 10,000 jobs followed a revised gain of 3,000 the prior month, according to the report from ADP Employer Services. Economists in a Bloomberg survey had forecast a loss of 60,000 jobs this month.