Treasuries tumbled for the sixth day as the Fed raised its assessment of the US economy, making it less likely that they will be as agressive with debt purchases as they have been up to this point. Yields on 10-year Treasury notes rose to its highest level in four months.
Treasuries continued their southward journey (price down yields up) with the benchmark 10-year yield climbing 16 basis points to 2.28 percent, and touching 2.29 percent during the day’s trade, the highest level since Oct.31. Yield on 30-year bonds rose 0.16 percentage points, or 16 basis points, to 3.42 percent, their highest level since Oct.28. The Treasury sold $13 billion worth of 30-year bonds today at a yield of 3.383 percent, the highest since August.
The iShares Barclays 20 Year Treasury Bond ETF (TLT) lost 2.87 points, or 2.52 percent for the day, while the Vanguard Total Bond Market ETF (BND) shed 0.49 points, or 0.59 percent over Tuesday’s close.
US stocks ended mixed Wednesday with the Dow (DJIA) logging in its sixth day of gains supported by the technology sector. However, the S&P 500 closed lower as investors remained edgy about the results of the recent stress-tests conducted by the Federal Reserve.
The Dow Jones Industrial Average climbed 16.42 points, or 0.1 percent, to 13,194.10, after scoring big gains yesterday. Today’s gains were led by Bank of America (BAC) and American Express Co (AXP), both clocking 4.1 percent and 3.5 percent gains, respectively. Investors however, punished those banks that failed the Fed’s stress-tests.
The S&P 500 Index (SPX) however, shed 1.67 points, or 0.1 percent, to close at 1394.28. Utilities were the biggest losers while tech and financial gained among the 10-sector industry groups.
The tech-heavy NASDAQ Composite (COMP) added 0.85 point to close at 3040.73. Apple Inc (AAPL) hit an all time Wednesday with shares trading close to $600 apiece, a gain of 3.8 percent on the day.
Citibank (C) and MetLife (MET) fell sharply after both the banks failed Fed stress-test. Shares of Goldman Sachs (GS) came under pressure after a senior executive resigned calling the company ‘toxic.’
Among tech stocks, LSI Corp’s (LSI) strong quarterly result lifted semiconductor companies.
Oil prices for April delivery dropped $1.28, or 1.2 percent, to close at $105.43 a barrel.
Gold futures for April delivery fell $51.30, or three percent, to end at $1,642.90 an ounce.