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After a brief rally at the opening, the bond market was under pressure for the rest of the day and is ended the week on a down note.

The benchmark 10-year

Treasury note fell 7/32 to 100 5/32, raising its yield to 5.728%.

The 30-year

Treasury bond fell 7/32 to 107 6/32, raising its yield 4 basis points, to yield 5.742%.

At the

Chicago Board of Trade

, the

Treasury futures contract fell 3/32 to 100 13/32.

Some of the factors behind the market's extended rally in recent weeks are losing influence and reducing investors' motivation to hold bond positions. Tensions in the Middle East are easing and the stock market is less erratic. Today, the

Dow rose strongly and the tech-heavy

Nasdaq also edged higher, pulling investors out of the longer end of the bond market.

"I think the market has been running up and building in a lot of good news," said David Ging of

Credit Suisse First Boston.

"The market has run too far and there's new supply next week," he noted.

Fannie Mae

is issuing $4 billion-$5 billion of 10-year notes due to be priced on November 1.

This morning's GDP release for the third quarter showed a 2.7% increase, after a rise of 5.6% in the prior period. An increase of 3.4% had been expected. This new sign of slowing in the economy was not able to give the bond market much of a boost as investors believe that good news is fully priced in at current levels.

Economic Indicators

Durable goods orders


definition |

chart |


) for September rose 1.8%, ahead of expectations of a 0.5% rise. An 11.8% increase in demand for electronic goods helped to trigger the jump in the index.

The September

Consumer Sentiment Index


definition |

chart ) was down at 105.8 after 106 in August.

Currency and Commodities

The dollar rose against the yen and fell against the euro. It lately was worth 108.64 yen, up from 108.35. The euro was worth $0.8397, up from $0.8294. For more on currencies, see


Currencies column.

Crude oil for December delivery at the

New York Mercantile Exchange

fell to $32.70 from $33.71.


Bridge Commodity Research Bureau Index

fell to 219.32 from 220.60

Gold for December delivery at the


fell to $266.0 from $266.6