After falling for seven straight trading sessions, bond prices rose on Wednesday. The rally was fueled by strong demand for the Treasury’s ten-year note auction, the absence of anything surprising in Fed Chairman Bernanke’s testimony to Congress.
This morning, bond prices have given up some ground following the release of the latest weekly jobless claims data. Initial claims fell to 383,000, the lowest level since July 2008. While the Labor Department said that the claims data is still being influenced by weather issues, the claims data continues to tick lower fairly consistently as measured by the less volatile four-week average which fell to 415,000.The U.S. Treasury will auction $16 billion of 30 year bonds today, so we are not yet out of the woods in terms of volatility
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