Friday, June 01, 2007 3:27:03 PM - Bonds slid on Friday after the release of strong labor and manufacturing reports reduced hopes of a Fed rate cut sometime this year. The drop in bonds sent treasury yields to their highest level since last summer. Friday's slide continued a downward trend bonds have been on since the first half of May.
The 10-year yield soared Friday morning on the release of the stronger-than-expected jobs data. The yield continued to climb when a robust report on manufacturing inspired further selling. As the day progressed, the rise lost some of its momentum, but traders continued to move money out of fixed income investments.
A last yield rise came in the last few minutes sent the 10-year yield to its highest level of the session and the week. The 10-year yield closed at 4.956%, up 6.6 basis points on the day. This was the first time the 10-year yield has closed above the 4.95% line since August of last year.
