Interest rates fall after weaker services report

By Associated Press
Posted July 6, 2010 at 5:12 p.m.

Interest rates are lower in the Treasury market after a disappointing report on services businesses added to concerns that the economy is slowing.
The gains in Treasury prices Tuesday has pushed down interest rates, which have been falling for weeks.

The yield on the 10-year Treasury note fell to 2.94 percent from 2.98 percent Friday. Its price rose 40.625 cents to $104.78125.

U.S. markets were closed Monday for Independence Day.

The Institute for Supply Management, a trade group of purchasing executives, reported that its services index fell to 53.8 in June from 55.4 in May. Economists polled by Thomson Reuters had expected a level of 55.0. The report still indicated that services business are growing, just not as quickly.

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