Treasury Yields Set Another All Time Record Low, US Stocks Sink

(Bond Market Wrapup for June 1st, 2012)  Treasuries yields fell to yet another record low after a Labor Department data showed US employers added only 69,000 jobs in May, pushing the unemployment rate up to 8.2 percent. The yield on the benchmark 10-year notes dropped nine basis points, or 0.09 percent, to a new all time low of 1.47 percent in early afternoon trade. 30-year Treasury Bond  yields dropped 10 basis points to 2.54 percent, also a record low.

10 Year US Treasury Note 1 Month Chart 

Bond Funds were up on the day, with the The iShares Barclays 20 Year Treasury Bond ETF (TLT) jumping $2.76, or 2.16 percent, to settle at $130.36, while the Vanguard Total Bond Market ETF (BND) gained 11 cents, or 0.13 percent to close at $84.62.

TLT 1 Month Chart


US stocks sank more than 2 percent Friday to script the worst day of the year with the Dow Industrials plummeting in the negative territory, wiping off gains for the year after a US jobs report fell wide short of expectations. The S&P 500 and the NASDAQ moved into correction territory, losing more than 10 percent from the year’s highs as investors rushed to buy Treasuries and gold.

The Dow Jones Industrial Average (DJIA) slumped 274.88 points, or 2.2 percent, to 12,118.57, the biggest single-day drop since Nov. 9. The index is down 2.7 percent for the week and has reversed all of 2012’s gains, trading 99 points below where it started in 2012. All the 30 components ended low with Bank of America (NYSE: BAC), American Express (NYSE: AXP) and Hewlett Packard (NYSE: HPQ) leading the decliner’s list.

Dow Jones Industrial Average 1 Month Chart

The S&P 500 Index (SPX) dropped 32.29 points, or 2.5 percent, to 1278.04, its worst day in six months. The S&P however remains in the green territory, up 1.6 percent for the year.

The NASDAQ Composite Index (COMP) shed 79.86 points, or 2.8 percent, to close at 2747.48. The tech-heavy index is off 3.2 percent for the week, culling its year-to-date gains to 5.5 percent. NASDAQ component Groupon Inc (NASDAQ: GRPN) tumbled 8.9 percent to $9.69.

For every stock advancing, six stocks retreated on the NYSE.

Oil prices for July delivery fell $3.30 to close at $83.23 a barrel.

Gold futures for August delivery rose $57.90 to $1,622.10 an ounce.  

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