Such is it with the last few days of the year. The market drops a little one day, moves up a little the next day. Treasuries are slightly firmer today, with just two more sessions to go before year-end.
Lately the 30-year Treasury bond was up 6/32 to 95 19/32, dropping the yield 1 basis point to 6.46%. As it stands, the 30-year's yield is about 2 basis points lower than this year's closing high, reached
Today's only monthly economic release was the Conference Board's index of
leading economic indicators
, which rose 0.3% in November. Economists as polled by
were expecting a 0.2% increase. October's figure, originally flat, was revised to a 0.1% gain. Rising stock prices, an increase in money supply and new orders for consumer goods accounted for the increase in November.
reported trading volume by 10 a.m. EST actually up 5.7% when compared with the average Wednesday during the past month.
The market was slightly higher coming into the U.S. opening due to a bit of strength in the Japanese market. Yields on 10-year Japanese government bonds fell to 1.665% from 1.675% overnight
Analysts already believe next week could be a harsh one for the bond market, with desks fully staffed and the market staring the
National Association of Purchasing Management's
and the December
in the face. Fear of
is still the dominant factor in the Treasury market right now, and it's only taking a break because of the holidays this week. The
fed funds futures
contract listed on the
Chicago Board of Trade
lately was fully pricing in a Feb. 2
rate hike to 5.75% from 5.5%.
"There is a slew of data around the corner and fundamentals still show economic strength," said a morning comment from traders at
Aubrey G. Lanston