Where Bonds Are Likely To Go
Bonds were up 19 ticks to 108-17 on softer equities and flight to quality in
front of the weekend deadline for Iraq. In a CNBC interview, Pimco’s Bill Gross
said “the bond market has seen its best days,” and that yields will
likely move higher in coming years.
Crude supplies were up 3.1 million barrels last week, according to the
Department of Energy, which was more than expected. Imports were up, too, about
500 million barrels. March crude oil closed down .54 at 26.28.  Â
Although they opened lower on follow-through selling, soybeans rallied on
news that southern Brazil may begin to dry out next week, and on rumors that
China may be in the market. March beans closed at 562, up 1 1/2c.
News that the USDA will buy 5.1 million pounds of beef sent April cattle up
.40 to close at 78.60.
A likely European interest rate cut lifted gold 2.00 to 324.50.Â
The Euro moved higher as German banks bought it against the Pound. Tomorrow’s
interest rate meeting should make for more volatile trading. The Euro fell six
ticks at 1.5670.
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