What Treasuries Will Be Looking For Next Week
The equity markets rallied
after the economic data came and went
without any major catastrophe while Treasuries had saw their biggest decline in
months.
Equities
The equities rallied on the better than expected
factory orders number. Volume was heavy at 1.5 billion on the NYSE and 1.8
billion on the Nasdaq. And winners beat losers in both markets by 3 to 1
and 2 to 1 respectively. The Nasdaq index futures contract
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25.00 to close at 1138.50. The S&P contract
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927.50,
and the Dow
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finish at 8545.
Fixed Income
Treasuries saw their most dramatic decline in
months today on the back of equity strength; stronger than expected factory
orders (which had broad based participation from all industries); and next weeks
FOMC meeting ( expect neutral bias) and Treasury auction. The 10 year futures
contract
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was down by 0-17 to close at 113-07; and the five year note
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down 0-75 to close at 113-185.
Metals
Gold
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dollar and equities. And there were reports of heavy gold selling coming from
one hedge fund in particular. The precious metal was down by 1.1 to finish
at 341.30. Meanwhile, silver
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sympathy by 2.30 to finish at 4.784. Copper
(
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Energy
Oil was unable to keep its early morning gains
and closed as the market interpreted the increase in US gasoline inventories to
mean that refinery demand for oil would be lower in the months ahead. Other
interesting news included an announcement by Saudi Arabia’s state oil company,
Aramco, that it would boost production capacity to as much as 12 million barrels
a day by 2007 (currently at 10.5). June crudeÂ
(
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cents at 25.67. Natural gas
(
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Currencies
The dollar was lifted higher today as a result of
equity market strength and lower bonds, while the euro was hurt by lower
manufacturing data and calls from leading economists for the Central Bank to
lower interest rates. The Japanese yen was also lower on the back of a newspaper
report suggesting that the government may call for active yen selling as part of
stimulus measures to be introduced next week. The USD index
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DX03H |
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PowerRating) was up
by .06 and
finished at 96.94.