Reply #24: Treasurys tugged in two directions by income, inflation data

[UpInArms]

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38625.3653359144-844505019&siteID=mktw&scid=0&doctype=806&

CHICAGO (MarketWatch) -- The benchmark 10-year Treasury note moved lower in price in the immediate wake of a report that showed an increase in a key measure of inflation released alongside monthly income and spending figures. But the report also showed a post-Katrina slump in income and spending, which tempered some of the impact of the inflation reading. The Fed's concerns about inflation have been well-telegraphed this week, leading the bond market to assume the central bank isn't done raising interest rates. At last check, the 10-year note was up 2/32, or some 63 cents per each $1,000 in securities at face value, at 99 22/32. Its yield ($TNX) rose to 4.29% vs. 4.3% Thursday.