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Daily Market News
09/01/2011
Treasuries rallied overnight as weak economic data from Asia and Europe combined with a disappointing bond auction in Spain to push investors towards the safety of US Treasuries. In terms of US economic data, a mixed weekly jobless claims report did little to move the market this morning. Initial jobless claims fell slightly more than expected (409k vs 410k) but continuing claims increased slightly more than expected (3.735 vs 3.670). The July construction spending report and Aug ISM manufacturing reports will draw some attention later this morning but investors will likely spending the rest of the day squaring positions ahead of tomorrow’s payroll report. Currently, the 10yr yield is at 2.209% (2.17% Tuesday) and the 2-10 yield spread is at 202 bps, steeper by 4 bps since yesterday morning.
