Treasuries Fall on Fed and Greece, US stocks Rebound

(March 7th, 2012) Treasuries pared some of yesterday’s gains after reports appeared in the Wall Street Journal that Fed could print money to buy Treasuries or long-term mortgages, and borrow them back at low rates over short-term to curb inflation. US ten-year yields rose 0.03 percent, or 3 basis points, to 1.98 percent, after New Jersey-based ADP Employer Services said US companies added 216,000 employees to their payrolls in Feb. Yields on 30-year Treasury bonds jumped five basis points to 3.12 percent.

The iShares Barclays 20 Year Treasury Bond ETF (TLT) shed 0.72 points, or 0.61 percent, for the day, while the Vanguard Total Bond Market ETF (BND) gained 0.02 points, or 0.02 percent over yesterday’s close.

US stocks closed higher on Thursday, recouping nearly half of Wednesday’s losses after latest data showed private sector hiring is gaining traction. Sentiments were further buoyed by the news of a possible Greek debt-swap settlement by Thursday and the Fed devising a new method to keep interest rates low. The Dow Jones Industrial Average (DJIA) zoomed 78 points, or 0.6 percent, to 12,837.33, after losing over 200 points yesterday that marked its biggest single-session drop this year. 23 of the 30-component Dow gained Thursday with Bank of America Corp (BAC) taking the lead with 4 percent gain. Online radio service Pandora (P) slumped more than 20 percent after missing quarterly revenue and profits target narrowly. Also Children’s Place Retail Stores (PLCE) closed lower after quarterly earnings missed street expectations.

The S&P 500 Index (SPX) rose 9.27 points, or 0.7 percent, to 1352.63 with the financial and the industrial sector advancing the most. Only utilities in the 10-sector index closed lower.

The tech-heavy NASDAQ Composite (COMP) added 25.37 points, or 0.9 percent, to close at 2935.69 after Apple Inc (AAPL) added 0.1 percent in choppy trading.

For every stock declining, three stocks advanced on the NYSE.

Gas prices dropped for the second day on the trot after advancing in successive trading sessions. The latest pull-back will help in easing inflation worries for the economy, though prices are higher 14.7 percent this year.

Oil prices for April delivery gained $1.46 to close at $106.16 a barrel.

Gold futures for April delivery rose $11.80 to $1,683.90 an ounce.

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