The Big Bad Bond Index (BBBI), which tracks high grade corporate bonds, fell 5 points closing at 1,1547.28. This means the average bond in the index was trading at $1,147.28, a drop of 0.5%. Twenty five bonds ended lower and five higher. The average yield rose to 2.24%.
The biggest loser of the day was Travelers (TRV) 6.25% coupon bond maturing 6/2037 which lost over $25 per $1000 face value bond. Traveler’s stock ended the day down ¾% as the financial stocks suffered in general. Other large losers included bonds from Proctor and Gamble (PG) and Pfizer (PFE)
In a day that did not see many winners, gains where they could be found were small. For example, the GE 5.25% coupon bond maturing 12/2017 gained $5. As GE bonds have been beaten up, maybe this represents some opportunistic buying.
The 2, 5, 10, and 30 year Treasuries all slightly fell in price . .very slight with the biggest change occurring in the 10 year bond with ended the day yielding 1.97%, up 0.03%. In other words, the BBBI and the treasury market again moved in the same direction.