What This One-Two Punch Did To Treasuries
The war with Iraq has begun in
earnest, and as expected, oil, bonds, and gold all finished lower. Meanwhile,
the markets that suffered from the “war trade” finished mixed, as equities were
slightly higher, and the dollar was lower.
Equities
Price action in equities was dictated by war
news. The Nasdaq
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and closed at 1087.00; The S&P June contract
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2.80 to finish at 875.50, and the Dow contract
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finish at 8265.
Fixed Income
Treasuries were affected by a combination of
bearish factors today, including a record one month $96.3 billion govt. deficit
and further unwinding of the war trade. The 10 year contract
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closed at 113-020, down 0-080; the 30 year
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0-22; and the five year note finished down 0-040 to close at 112-090
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Metals
All metals were down today, especially the
precious ones. Gold was down 3.20, to finish at 333.00
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metals also finished lower on the back of serious conviction from the equity
markets. Aluminum was up .0040 and closed at .6585. And Copper was also down to
finish at 76.80
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Energy
Energy futures were mixed today, as crude oil
fell by another 4.45% to close at 27.270
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up by .57% to close at 5.306
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Currencies
The US dollar index
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down day in five, finishing down .48 to close at 101.63. The dollar was modestly
lower against the euro and the yen