For the third straight day, bonds moved higher.
The market continues to benefit from unrest in the Middle East, with investors attracted by the safety of Treasury instruments. Today, the stock market -- which had been moving up in parallel with bonds -- recorded a mixed performance, with the tech sector losing ground This pull-back in equities gave an extra boost to bonds.
The benchmark 10-year
Treasury note rose 11/32 to 101 5/32, dropping its yield 4
basis points to 5.594%.
Treasury bond gained 20/32 to 108 1/32, dropping its yield 4 basis points to 5.684%.
Chicago Board of Trade
, the December
Treasury futures contract settled at 101 7/32, up 19/32.
The bond market had no new economic data to give direction to trading and, in keeping with recent trends, volume was light. According to
GovPX, $14.8 billion of Treasuries changed hands through 3:00 p.m. EDT, 37.3% below the average for a Monday over the past month. Through 1:00 p.m., volume of $6.7 billion was nearly 60% below average and the sixth-lowest reading on record, GovPX said. The bond market sees bullish and bearish factors largely balancing one another, leading to sharply reduced trading volumes.
Traders see the bond market attracting investors as equities are trading erratically, and implications for higher oil prices from the Middle East crisis have been limited so far. "Stocks have pared a lot of gains and we haven't seen a huge run up in oil prices in relation to the turmoil," said Mary Ann Healey of
D. A. Davidson
Currency and Commodities
The dollar fell against the yen and rose against the euro. It lately was worth 108.28 yen, down from 108.80. The euro was worth $0.8350, down from $0.8412. For more on currencies, see
Crude oil for December delivery at the
New York Mercantile Exchange
fell to $33.69 per barrel from $33.76.
Bridge Commodity Research Bureau Index
fell to 225.97, down from 226.79.
Gold for December delivery at the
fell to $272.00 an ounce from $273.20.