Treasuries Rise on Stock Market Selloff

The benchmark U.S. 10-year Treasury note rose 18/32 at 98-15/32 with a yield of 4.6987%. The Labor Department reported lower payroll expansion and a rise in the unemployment rate, which led investors to purchase safer investments such as Treasurys.

The U.S. dollar had the largest drop in almost a month against the euro, dropping 0.6%. The U.S. dollar also slid lower against the yen after U.S. reports showed slowdowns in job growth.

Overall, the U.S. dollar declined versus 13 of the 16 major currency pairs. Losses accelerated when price broke $1.5730 per euro, where many traders had placed stop orders.

Crude oil futures dipped 1.8% to $75.48 on speculation that U.S. economic growth will slow, reducing demand for gasoline and other fuels.

Gold futures rose 1.3% after the dollar continued to weaken. Gold has an inverse relationship to the U.S. dollar. Soybeans and corn futures both gained 0.8% in today's session.

Stocks plunged on Friday, as fears continue to grow that credit market problems, initially confined to the subprime market, are spreading throughout the economy. Today's disappointing employment report further heightened negative investor sentiment. Click here to read the rest of TradingMarkets Stock Market Recap.

John Lee
Associate Editor
johnl@tradingmarkets.com

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