How Did Illinois Manage To Push Treasuries Lower?
Stocks overcame the weak
jobless data and pulled off another positive close for the day, while
treasuries, especially the long end, closed lower.
Stocks
Equities eked out another positive day despite a
worse than expected +16,000 jump in jobless claims. The pharmaceutical industry
led advances after a major drug maker ended an agreement to buy a rival company
for $1 billion. Hypermarket and supermarket shares gained after the world’s
largest retailer said sales at stores open at least a year increased 2.1% in May
from a year earlier. Semiconductor stocks climbed after a major communications
chipmaker reported a sustained increase in order since April, The Nasdaq
future
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up 4.50 to finish at 990.70,
and the Dow
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Push Treasuries Lower?
Fixed Income
Treasuries fell as investor demand shifted away
from federal debt towards corporate and municipal bond in recent days.
Treasuries fell after the state of Illinois sold a record $10 billion of public
pension bonds yesterday. The 10 year futures contract
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was down -15 at 121-05; and the five year note was down 095 at 115-270
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Metals
July gold
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weaker US currency, rising 5.9 to close at 369.50;
silver
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as hedge funds add to their long positions, and aluminum
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.0025 to close at .6600.
Energy
Crude was up on the back of technical buying and
the July crude
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by .146 to
close at 6.521
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Currencies
The dollar fell 1.7% against the euro as a result
of today jobless claims data. The USD index
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finished at 92.59.