Without Tokyo to send the bond market into a panic, bonds are sliding downward on the stock trade. All major U.S. equity indices opened strongly, putting the kibosh on the recovery prospects in fixed-income land.

The 30-year Treasury was down 17/32 lately to trade at 101 10/32, with the yield rising to 5.16%. Not having the Tokyo markets open put a damper on trading volume. But even through 10 a.m., when U.S. markets are open,


volume was still down 49%.

Stocks faded somewhat after the open, but that wasn't enough to spur a rally in bonds. Looking down the yield curve, only six-month and one-year Treasury bills were in the black.

The market didn't react to a stronger-than-expected

durable goods

report or the downward revision to


. Durable goods orders rose 1% for the month, reiterating the sense that "the slowdown in the U.S. economy is very gradual," said Dana Johnson, head of capital markets research at

First Chicago

. "It doesn't call into question the


decision to leave its policy unchanged."

Third-quarter gross domestic product was revised downward to 3.7% from 3.9%, while the price index and implicit price deflator were both revised upward to 1% from 0.8%. The larger-than-expected trade deficit accounted for most of the downward revision.

"Some thought that would be offset by the construction and housing increases," said Peter Kretzmer, senior economist at

Bank of America

. "Those did increase, but not enough to offset the wider trade deficit."


University of Michigan's index of consumer sentiment

for December fell to 100.5 from 100.7, according to a

Dow Jones

report. The final November figure was 102.7.

Expectations as reported by