The U.S. Trade Deficit Widens In April

The U.S. Commerce
Department said that exports increased 3%
in April while imports
increased 4%. This news pushed 10-year yields above 4% for the first time this
month. September 10-year Treasury Notes closed at 112 31/32, down 19/32. 

The index of leading indicators for Japan was down 0.3% in April, according to
the Conference Board. The September yen lost 0.00097 at 0.9296, the lowest close
in eight months.

Although nothing was new in Mr. Greenspan’s testimony yesterday, the December
eurodollars closed lower 0.08 at 96.035.

In April Canada’s exports were up 0.3% while imports were down 0.5%. The
September Canadian dollar closed up 0.44 at 80.15.

The S&P 500 is still trapped in a 2-week trading range just above the rising
20-day moving average. September SP 500 finished lower 2.40 at 1203.70.

South Korea bought 8500 tons of U.S. wheat today, according to the USDA. July
wheat finished at 3.135, down 3/4.