Benchmark 10-year note enjoys big weekly gain

Bloomberg News Service

The benchmark 10-year note had its biggest weekly gain since January last week after the economy in June created less than half the number of jobs forecast by economists.

The report, which came two days after the Federal Reserve raised its key interest rate to 1.25 percent from 1 percent, bolstered speculation the central bank won't need to accelerate the pace of rate increases. Policy-makers may even skip an increase at one of their four remaining meetings this year, some investors said.

On the week, the benchmark 4 3/4 note due May 2014 rose about 1 1/2 points, or $15 per $1,000 face amount, to 102 1/4, according to Cantor Fitzgerald LP, a bond broker.

Its yield fell 19 basis points, or 0.19 percentage point, to 4.46 percent — the lowest since April 27, based on closing prices.

It was the third straight weekly gain for Treasuries and the biggest rise since the five days ended Jan. 9.