Bonds Plunge, Pressuring Indexes
T-bonds [USH0>USH0] are trading at contract lows following a National Association of Purchasing Managers report that showed manufacturing activity expanded for an 11th straight month and prices paid by companies rose unexpectedly. Traders who had taken flight-to-quality, long positions in anticipation of Y2K calendar change problems are covering as the 2000 year change passed with no major glitches, adding additional downside pressure to bonds. The new low point for March, a component of the Implosion-5 List,
now stands at 89 26/32.
Stock indexes are having a wild day: Nasdaq 100 futures have already traded over a 200-point range, gapping higher, spiking up then selling off. The S&Ps and Dow futures are also lower and trading over large ranges.
The dollar is lower on the perception that expanding economic activity in Japan and the Euro-zone will increase demand for the Japanese yen, Swiss franc and Euro. Reports Monday showed manufacturing activity hit multi-year highs in Germany, Spain and France.
Oil and its derivative futures products are off sharply as OPEC compliance with production quotas falters.
Here are the highlights around noon Eastern time:
Stock Index and Bond Futures |
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Currencies |
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Energies |
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Grains |
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Meats |
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Softs and Fibers |
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