Bond Market Close July 31 2009

July 31st, 2009 4:31 pm | by John Jansen |

Prices of treasury coupon securities surged today. I offered the reasons in an earlier posting and those reasons remain intact.

The yield on the 2 year note has declined 6 basis points to 1.11 percent. The yield on the 3 year note has dropped 8 basis points to 1.59 percent. The yield on the 5 year note tumbled 10 basis points to 2.53 percent. The yield on the 7 year note collapsed 12 basis points to 3.16 percent. The yield on the 10 year note slumped 11 basis points to 3.50 percent. The yield on the Long Bond dropped 9 basis to 4.32 percent.

The 2year/10 year spread narrowed 5 basis points to 239 basis points.

The 10 year/30 year spread widened 2 basis points to 82 basis points.

The 2year/5year/30 year spread richened to 37 basis points from 32 basis points at the open.

Expectations regarding future inflation dipped as breakevens on 10 year and 30 year TIPS declined. The 10 year breakeven moved to 1185 from 190. The breakeven on the 30 year moved from 229 to 222.

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  1. 2 Responses to “Bond Market Close July 31 2009”

  2. By Chicken on Aug 1, 2009 | Reply

    And yet gold closed up $20.80 Friday… What a casino!

  3. By glen on Aug 1, 2009 | Reply

    lemme see…Gold up, Equities up, Oil up, USD down, commodities up……whoops..30 year Treasuries UP……???? I will never understand the Bond market….

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