Treasury prices continue to fall after jobs report; greenback hits three-week high against euro.

May 9, 2005: 9:24 AM EDT

NEW YORK (CNN/Money) - Treasury prices extended losses for a second session Monday while the dollar continued to gain strength from last week's surprisingly strong jobs report that calmed some concerns about the U.S. economy.

The benchmark 10-year note fell 7/32 of a point to 97-22/32 to yield 4.30 percent, up from 4.26 late Friday. The 30-year bond dropped 6/32 of a point to 110-30/32 to yield 4.64 percent, up from 4.63. Bond prices and yields move in opposite directions.
The five-year note lost 6/32 of a point to 100, yielding 4 percent, and the two-year note fell two ticks, yielding 3.76.
The Labor Department said employers added 274,000 jobs to payrolls last month, up from a revised 146,000 gain in March. Economists surveyed by Briefing.com had forecast a 170,000 gain in April.
The hefty gain eased concerns an economic slowdown would prompt the Federal Reserve to pause its monetary tightening campaign.
Wholesale inventories data for March are due at 10 a.m. ET Monday. Economists forecast a
rise of 0.8 percent in inventories, compared to a 0.6 percent gain the previous month.
Inflation hurts bonds as it erodes the value of the fixed-income investment. However, rising
interest rates generally help the dollar as they make dollar-denominated securities more
attractive to foreign investors.
In currency trading, the dollar gained against the yen and hit a three-week high against the euro early Monday.
The euro bought $1.2812, down from $1.2824 late Friday, while the dollar bought ¥105.68, up from ¥104.99 in the previous session.

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