Would you invest in a company so secretive it won’t say where it is carrying out operations or even where most of the “plant and equipment” included on the balance sheet are located? Well, the trusting investors in shipwreck exploration company, Odyssey Marine Exploration, were well rewarded for their leaps of faith last Friday when the company http://www.guardian.co.uk/international/story/0,,2083282,00.html...
Treasury Prices Pull Back Slightly After Strong ISM Services Data For November
March 16, 2008 on 4:40 pm | In Finance |
BY REUTERS
Posted 12/5/2006
Treasury debt prices slipped on Tuesday after an index of U.S. service sector activity unexpectedly rose, casting some doubt on the notion of an early 2007 interest-rate cut from the Federal Reserve.
The mild pullback came after a weeks-long bond market rally built on evidence of a slowing economy. The Institute for Supply Management’s November data went counter to that trend, delivering the strongest reading since May.
Reacting to the news, benchmark 10-year notes fell as much as 7/32 but were down just 5/32 in late trade, yielding 4.45%, up from 4.43% on Monday.
The ISM’s services index rose to 58.9 last month from 57.1 in October, above median estimates for a dip to 56.0.
The components were mixed, with prices paid climbing and employment hovering at a level signaling modest growth.
Anthony Chan, managing director and chief economist at JPMorgan Private Client Services, noted that the price component was disappointing for bond investors who are always wary of any signs of inflation, which erodes the value of their fixed returns.
Still, losses in Treasuries were fairly modest, as investors appeared unwilling to dismiss other evidence of softness in the economy just yet.
Signs of a weakening economy have multiplied recently, with noticeable slowing from the auto sector to consumer spending.
This had sparked speculation that the Fed could begin cutting interest rates in early 2007. That speculation has helped push bond yields to their lowest levels since January.
The ISM report put a damper on that prospect but by itself was not enough to rule out the possibility of looser monetary policy.
Two-year notes were flat and yielding 4.53%, having briefly hit an 11-month low of 4.48% earlier in the session.
Also on Tuesday, third-quarter unit labor costs were revised lower; this appeared to give the Federal Reserve room to start cutting rates without worrying about inflation.
However, the nonmanufacturing ISM data were more recent and held immediate sway with market participants.
Five-year notes slipped 2/32 for a yield of 4.39%, and the 30-year bond lost 14/32, offering a yield of 4.57%.
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Fishy pair in door-to-door seafood scam »ROGUE fishmongers are targeting Edinburgh with a scam which has already cost one man hundreds of pounds. The pair have been going door-to-door in recent days, reportedly using “high pressure” sales techniques. The fish they sell are overpriced and thought to be out of date, sparking health concerns. Trading Standards officers also believe the fish may not be all they seem, as a similar scam last year saw people duped into buying what they thought were monkfish fillets but which...