Why Tomorrow Is A Big Day For Treasuries

Stocks finished off their
highs for the day, while Treasuries closed lower.

Equity

The US stock market surged higher at the open
today as a result of favorable earnings releases from B of A and Citigroup and
Merrill’s upgrade of Intel Corp. sprang to life without any
major catalyst.
The Nasdaq
future
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was up 18.50 to close at 1300.00. The S&P 500 contract
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was up 6.00 at 1003.10, and the Dow
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was up 48 at 9145.

Fixed Income

U.S. Treasuries finished the day close to the lows, as
participants squared up positions ahead of Greenspan’s testimony tomorrow .
The 10 year futures contract
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was
down 195 to close at 116-140; the 30 year
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was down 1-08 at 114-22; and the five year note was up 125 at 114-220.
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.

Metals

August gold
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was down as the result of
a stronger US dollar and closed at
347.20. Silver
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was down .02 at 4.795. Copper was
down 1.00
at 79.80
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, and aluminum
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was up at
.6630.

Energy

August crude
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was down by .07 to
close at 31.20. Natural gas was up by .038 at 5.14
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.

Currencies

The USD index
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was up .27 to close
at 96.40 as a result of higher US yields..