Bond prices declined on Friday on improved economic outlook and relief that only 7 of 91 European Banks failed their stress tests. While there is some concern the “stress” test was too lenient, the news was enough to move stock prices higher and bond prices lower.
This morning the Commerce Department announced new home sales for June rose 23.6%, although this was still the second slowest sales month since records keeping began in 1963. This data had little effect on the markets which are still trading from Friday’s news.
Bond prices are again falling with the yield on the 10 year note once again above 3%, trading at 3.03%, as the bond market prepares for this week’s Treasury auction of $104 billion; $38 billion of 2 year notes, $37 billion of 5 year notes and $29 billion of 7 year notes.
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