Treasuries End Week Mixed on Light Volume

The Treasury market has continued to benefit from the confusion created by the protracted standstill in the presidential election. Another very weak day on the equities markets provided a solid background for fixed-income buyers. Treasuries ended the day mixed, however, and volume was relatively light. The market lacked major new economic information.

"There's been a flight to quality in Treasuries -- equities are weaker, and it's based on the political situation," said Richard Gilhooly of Paribas Capital Markets.

The benchmark 10-year Treasury note rose 3/32 to 99 21/32, dropping its yield 15 basis points to 5.793%.

The 30-year Treasury bond fell 2/32 to 105 10/32, raising its yield 4 basis-points, to 5.868%.

At the Chicago Board of Trade, the December Treasury futures contract fell 6/32 to 99 6/32.

"We've seen a bit of selling at the long end of the curve," said Gilhooly. (Yields fell at the shorter end of the curve and rose at the long end.) "Basically you have a continuation of curve steepening trades," he added.

The Dow Jones Industrial Average dropped 231 points and the Nasdaq Composite Index closed down by 171 points.

Economic Indicators

The University of Michigan Consumer Sentiment Index (definition | chart ) for November was 107.7 vs. a final October number of 105.8. (The November number is still a preliminary figure.) After losing ground so far this year, the index has unexpectedly reverted to a more positive tone.

Currency and Commodities

The dollar rose against the yen and the euro. It lately was worth 107.92 yen, up from 107.40. The euro was worth $0.8594, down from $0.8656. For more on currencies, see TSC's Currencies column.

Crude oil for December delivery at the New York Mercantile Exchange rose to $34.03 per barrel from $33.92.

The Bridge Commodity Research Bureau Index fell to 225.40 from 225.74.

Gold for December delivery at the Comex fell to $265.6 per ounce from $267.0