Higher bond and note prices suggest higher trader anxiety in the daily market place.
One very early clue that the stock market bulls are running out of steam is price action in the U.S. Treasury bond and note futures Wednesday.
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One very early clue that the stock market bulls are running out of steam is price action in the U.S. Treasury bond and note futures Wednesday morning.
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U.S. stock indexes slumped, U.S. Treasury bond and note futures prices soared and the U.S. dollar index vacillated but did back down in the wake of the jobs data.
And Treasury note and bond yields are much more controlled by global forces and higher as well than in Japan.
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T-Bond and T-Note prices have dropped dramatically this week.
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The lousy job figures have cleaned the clocks of the equity market and been a boon to the bond market, driving rates down below 3% on the 10 year note and driving up bond prices.
The spread on the 30 year U.S. Treausry Bond and the 2 year Treasury Note yields were moving closer together, currently at 238 basis points.
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Separately, Bloomberg reports that the Maestro himself, Alan Greenspan, is so concerned about a sudden sharp increase in interest rates that every day he checks the rate of the 10-year note and 30-year bond calling them the critical Achilles heel of the economy.
If actual growth proves to be better than forecast, then bond yields should rise and prices for the 10-year Treasury note should fall.
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Another risk is if an investor buys a premium priced bond and the borrower prepays by refinancing or selling the home then the Note is paid back at par and the investor loses the premium.
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In contrast, the benchmark 10-year Treasury note yields 1.63% and the 30-year bond yields 2.75%.
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It was exactly the sort of false note that Paddy never missed, and that the creator of Bond should not have missed either.
Government bond yields increased slightly as well, the 10-year benchmark note rising to 3.62% and the 30-year note rising to 4.75%.
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Government bond yields in Europe and Japan are lower, so these will have a suppressing effect on our 10-year Treasury note.
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