Bloomberg News

Treasuries Remain Lower After Report Shows Faster U.S. Growth

October 27, 2011

Oct. 27 (Bloomberg) -- Treasuries remained lower after a government report showed the pace of U.S. economic growth accelerated in the third quarter at the fastest in a year.

Yields on U.S. government securities rose earlier after European leaders agreed to expand a bailout program aimed at resolving the region’s sovereign debt crisis. Stocks rallied on speculation the plan will avert a global slowdown.

The 10-year Treasury note yield rose 10 basis points, or 0.10 percentage point, to 2.30 percent at 8:34 a.m. New York, according to Bloomberg Bond Trader prices.

Gross domestic product, the value of all goods and services produced, rose at a 2.5 percent annual rate, matching the median forecast of economists surveyed by Bloomberg News and up from a 1.3 percent gain in the prior quarter, Commerce Department figures showed today in Washington. Household purchases, the biggest part of the economy, increased at a more-than-projected 2.4 percent pace.

--Editors: Greg Storey, Dave Liedtka

To contact the reporter on this story: Daniel Kruger in New York at dkruger1@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net


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