The bond market's "noncrisis day" pattern is in effect. More ambiguous comments from Japan results in thin trading on the plus-side. Then, stocks open with nothing to fear, so the Treasury market shuffles sideways.
The 30-year Treasury bond was unchanged at 100 17/32, down from an earlier 6/32 gain. The short end of the curve was slightly better, with the five-year note up 2/32 to 100 14/32 and yielding 5.15%. The benchmark long bond's yield was 5.46% as of 11:15 a.m. EDT, down slightly from yesterday's close.
Expectations as reported by Reuters
The dollar advanced against the yen by 1.1 to 144.77 after Japanese Finance Minister
said overnight he did not see a reason to intervene in the yen at this time. It is curious that calls for intervention have come from lower-echelon officials
, while Miyazawa and Prime Minister
have said little on this matter.
The rally below the short-term fed funds rate is now in its third session. Selling off after punching through 5.5%, which some had predicted, has not happened yet.
"There's quite a bit of uncertainty, and as long as that's the case we're going to stay pretty pricey," said Bill Kirby, co-head of government trading at
. "The market's not offering a lot of value; it's the investment of last resort, if you will. We're kind of the only game in town, and people are comfortable parking their money in the Treasury market."
Even amid the vast rumors that the
maintained its tightening bias at the
Federal Open Market Committee
meeting last Tuesday. The Fed has not confirmed this information, and published reports refer only to "Fed officials."
existing home sales
rose 4% to a record 4.93 million. This surpasses the previous record of 4.89 million set in March, according to the
National Association of Realtors
. The market did not react.