Bonds End Winning Streak at Three as Stocks Garner More Attention - TheStreet

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%.

The 30-year

Treasury bond fell 16/32 to 107 18/32, lifting its yield 2 basis points to 5.716%.

At the

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.

Economic Indicators

Issuing the final

federal budget

(

definition |

chart |

source

) 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

(

definition |

chart ) fell 0.2%, its first decline in four weeks.

The

Redbook Retail Average

(

definition |

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

TSC's

Currencies column.

Crude oil for delivery at the

New York Mercantile Exchange

fell to $33.35 a barrel from $33.69.

The

Bridge Commodity Research Bureau Index

fell to 225.41 from 225.97.

Gold for December delivery at the

Comex

rose to $ $272.1 an ounce from $272.0.