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%.
Treasury bond fell 7/32 to 107 6/32, raising its yield 4 basis points, to yield 5.742%.
Chicago Board of Trade
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.
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.
Durable goods orders
) 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.
Consumer Sentiment Index
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
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