Huge jump in Treasury bond yields lures buyers back to the battered market

Yesterday the 4% coupon fell 100bp with the absence of buyers, but the opposite happened today as buyers came out in droves and pushed the coupon up 119bp to 98.94! Bargain hunting and a strong performance by the 7-yr note auction were the catalysts behind the move. Stocks had another dull session with low volumes in the absence of any economic news. The Dow rose 9.84 to 11,585.38, the S&P 500 gained a mere 1.27 to 1,259.78 while the Nasdaq finished at 2,666.93 up 4.05. Crude oil fell 37 cents to $91.12/barrel. Tomorrow’s economic data includes Initial Claims, Pending Home Sales and Chicago PMI.

Published by Seth Jacobs

Mortgage Broker, Disc Golfer and First Person Shooter Fan living in Vacationland.

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