After three days of higher prices, Treasuries fell today. However, the dip was seen as a profit-taking correction in what remains a bull market for bonds.
Investors have cautiously moved back into equities and the bond market has lost some of its safe haven attraction as the Middle East crisis seemed to be simmering down a bit.
The benchmark 10-year
Treasury note fell 10/32 to 100 27/32, lifting its yield 3
basis points to 5.636%.
Treasury bond fell 16/32 to 107 18/32, lifting its yield 2 basis points to 5.716%.
Chicago Board of Trade
, the December
Treasury futures contract fell 13/32 to 100 26/32.
Traders see the market as reacting inversely to stock market moves. "If you lay a chart of the active bond contract over the Nasdaq, it's a mirror image," said John Canavan of
Stone & McCarthy
. "We've had two days without any important data and we're just feeding off stocks."
Traders saw an opportunity to take profits after some solid gains in recent sessions. "Once stocks started pushing Treasuries lower, it was just profit-taking," Canavan said.
Issuing the final
) report for fiscal 2000, the Treasury Department said the government ran a $65.8 billion surplus in September, bringing the total for the year to $237 billion. In fiscal 1999, the government amassed a surplus of $124 billion.
The weekly retail sales reports were mixed. The
BTM Weekly U.S. Retail Chain Store Sales Index
chart ) fell 0.2%, its first decline in four weeks.
Redbook Retail Average
chart ) found October sales running 0.4% ahead of September after two weeks.
Currency and Commodities
The dollar fell against the yen and the euro. It lately was worth 107.85 yen, down from 108.28 . The euro was worth $0.8374 up from $0.8350. For more on currencies, see
Crude oil for delivery at the
New York Mercantile Exchange
fell to $33.35 a barrel from $33.69.
Bridge Commodity Research Bureau Index
fell to 225.41 from 225.97.
Gold for December delivery at the
rose to $ $272.1 an ounce from $272.0.