After a day of rest and thanksgiving, U.S. markets open to reports of strong “Black Friday” sales and a worsening financial crisis in Europe. U.S. stock markets are trading higher while the Treasury market trends lower. The yield on the 10 year note closed at 1.92% Wednesday and is currently trading at 1.965%.
The news from Europe is worse by the day. Investors required a yield of 6.5% to absorb 6 month debt in an Italian note offering today, and yields on Italy’s 2 year notes hit a record 8%. Borrowing costs across Europe are soaring, which will make the debt and deficit problems even worse as more of a country’s budget will be required for higher interest payments. U.S. leaders and politicians should take note; there is a limit to what the markets will bear.
The U.S. bond market closes early today, so the HSOA lock desk will close at 12 noon, PT.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment