Yields Hover Around 1-Month Lows

U.S. Treasuries traded with little change today,
hovering near 1-month yield lows.  Over the next three days the U.S.
government will sell $43 Billion in notes and bonds.  The Treasury
announced today that $22 Billion in two-year notes would be sold and $14 Billion
in five-year notes.  Bonds have declined over the the last month as more
and more signs point to the Fed pausing the rate hikes after 17 straight hikes
in a row. 

The U.S. Dollar rose against the Japanese yen and
Euro today as investors sought safety in the volatile global scene.  The
escalating violence in Palestine seems to be leading to a full-scale war, and
investors are scrambling to find safety and footing amidst the violence. 
The Fed meeting in August is also on everyone’s mind, as investors swing between
betting on rate hikes versus a pause in the hikes.

Crude oil futures closed up 0.8% at $75.05 a
barrel as the situation remained bleak today in the Middle East.  The White
House commented that there would not be a cease-fire until a viable solution
appears, of which there is none.  The U.S.’s acceptance of a continued
conflict continued to pressure investors that Iran’s supply of crude could
someday be removed the global market.  Natural gas closed fractionally
higher, up 0.3%.

The softs traded mixed today.  Orange juice
rose 6% on continued news that the Florida harvest will have manpower shortages. 
The USDA also released a report Friday stating that OJ concentrated inventories
were down 29% from last year.  Coffee and cocoa were both down over 1% and
sugar was up over 1%.

The metals traded mostly higher today. 
Despite a rally in the dollar, gold squeezed out a .3% gain for the day. 
Aluminum stood out, closing up 2% on the day.

Grains traded mixed today.  Corn was up
.75%, wheat was down 1.6%, soy was up 1% and oats were up 1.3%.

Meats traded mostly lower today.  Feeder
cattle was down 2% and potbellied pigs traded down over 3%.


No Major U.S. Economic News Today

John Patrick Lee