Bond Market Commentary
Our bond market experts provide bond market commentary on a daily basis.
Daily Comment
January 6, 2009
4:00 P.M. ET
Treasuries have finished the day with a volatile rally and a slight flattening trade, after having sold off in the overnight market. The 30-year Treasury (long bond) traded down approximately half a point from yesterday's close, but began trading up at 10:00 EST following the release of economic data. Factory Orders for the month of November reported worse than expectations (-4.6% versus analysts' consensus of -2.3%) and the previous month's number was revised worse to -6.0%. Pending Home Sales also reported below expectations at -4.0% with the previous month's print revised lower to -4.2%. The FOMC Minutes were also released from the previous Fed meeting, as policymakers stated we may see a "prolonged contraction" and that there has been an "appreciable reduction" in inflation pressures.
As the Treasury market nears its close for the day, the 2-year Treasury note is up 1 tick (or 1/32 of a point) at a price of 100 7/32 to yield 0.76%. The 10-year note is up 14 ticks at a price of 111 14/32 to yield 2.43%. The 30-year bond is up 31 ticks at a price of 129 14/32 to yield 2.99%.
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