I finally figured out what the strong $ policy is....
Yapping about how great things are and how much better they will be in 2006.
=================================================
RPT - Treasurys end lower after weak auction demand -
Tuesday, October 26, 2004 10:56:36 PM
afxpress.com
(Repeating for technical reasons)
CHICAGO (AFX) -- Treasurys reversed course to close lower Tuesday after a government sale of $12 billion in inflation-tied 5-year notes yielded less-than-anticipated demand
The 10-year note closed off 5/32 at 102 1/32. Its yield , which moves in reverse of price, rose to 4 percent
Wall Street also drew investors from the bond market as blue chips saw a trip-digit gain on signs that problems in the insurance industry might not be as serious as previously thought, with investors snapping up stocks as a result. The government's first sale since 1997 of 5-year Treasury Inflation Protected Securities yielded 0.590, while the bid to cover ratio was 1.80, compared to the 2.44 ratio at the last TIPS sale the first week of October
Earlier, prices treaded higher, with the benchmark yield pinned near seven-month lows, after a drop in consumer confidence bolstering thoughts of a slowing U.S. economy
The Conference Board on Tuesday said consumer confidence in the U.S. softened for the third-straight month in October, falling to 92.8 points from a revised 96.7 in September. Economists surveyed by CBS MarketWatch expected the index to fall to 93.4. Bonds have gained in recent weeks as record-high oil prices raise economic uncertainties, while a declining dollar is seen as inviting foreign demand for U.S.-issued debt
Crude-oil futures climbed back above $55 a barrel Tuesday to match last week's record close as traders turned their attention back to heating fuel ahead of this week's updates on U.S. petroleum supplies
Crude for December delivery rose 63 cents to close at $55.17 a barrel on the New York Mercantile Exchange, matching Friday's all-time record close. On an intraday basis, however, the day's high of $55.25 a barrel is still below Friday's peak of $55.50. "The chief reason consumers have less confidence today than they did a few months ago is that oil prices are higher," said Morgan Keegan & Co. analyst Kevin Giddis. "Throw in a dash of low employment growth and you have 5,000 not-so-happy households." U.S. businesses are discarding their earlier caution and investing more in capital goods and structures, Federal Reserve Vice Chairman Roger Ferguson said Tuesday in a speech in South Carolina
"The fundamental features of the current U.S. economy argue for solid increases in capital expenditures needed to produce and facilitate sales," he said in prepared remarks made available in Washington. The 30-year bond was 9/32 down, at 108 30/32, its yield declined to 4.78 percent
[That is your strong $ policy right there. Yapping - Mish]
The 5-year note was off 3/32 at 100 16/32, its yield at 3.27 percent. The 2-year maturity fell 1/32 to 99 30/32, its yield at 2.53 percent |
