NYMEX Hampered By New Threat
A bomb scare forced traders and staff to
evacuate the New York Mercantile Exchange, just blocks from the site of the
Twin Towers disaster. New York police have reported a 1000-fold surge in the
number of bomb threats being made in New York City since last week’s attack.
The Justice Department was also evacuated yesterday after a bomb
threat.Â
The NYMEX was evacuated for approximately 30 minutes
until the building was determined to safe to reenter. Trading in the metals
was interrupted. Energy trading, already on a shortened schedule, began
trading after the end of the scare.
Leading the Momentum-5
List, December gold
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PowerRating), unable to rally to new highs after
the recent terrorist attack, sent traders into the safe-haven of hard-metal
assets and drove prices up $20 an ounce.Â
Silver
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PowerRating), however, rocketed up
after the re-commencement of trading this morning, adding 5.7 to 447.0.
T-bonds
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PowerRating)Â are down a hefty 1
22/32 following yesterday’s “surprise” rate cut by the Fed. The
government is also expected to issue a mass of bonds to reconstruct after
last Tuesday’s devastation, to finance war and security expenditures, and
even to possibly bail out the airlines. This will increase the supply of
bonds, driving their price lower. The issuance of massive amounts of
liquidity is also inflationary, requiring a higher yield on longer-dated
Treasuries to compensate for the erosion of their value. Bond yields have an
inverse relationship with their price where lower bond prices give a higher
yield.