Bonds Give Up Gains after Record Auction, Stocks Down

(Bond Market Wrapup for July 11th, 2012) Treasuries advanced slightly after the Fed’s June 19-20 FOMC minutes and the Treasury sold $21 billion in 10-year notes at a record-low yield of 1.459%.

The benchmark 10-year yield ended the day up  one basis point, or 0.01 percentage point, to 1.51 percent after reports showed wholesale inventory for May increased by 0.3 percent. The yield on 30-year bonds remained unchanged at 2.59 percent in late afternoon trading, New York time.

10 Year Treasury 1 Month Yield 

 

The iShares Barclays 20 Year Treasury Bond ETF (TLT) rose 16 cents, or 0.12 percent, to end at $128.60 while the Vanguard Total Bond Market ETF (BND) slipped 12 cents, or 0.14 percent to settle at $84.69.

TLT 1 Month Charts

US stocks fell Wednesday to extend losses for the fourth straight day after the Federal Reserve minutes from the latest meeting showed few members argued in favor of further monetary stimulus. The Dow Jones Industrial Average (DJIA) erased loses to close 48.59 points, or 0.4 percent lower at 12604.53, despite sinking 118 points after a government report showed US trade deficit dropped to $48.7 billion in May from $50.1 billion the prior month due to rise in exports to Europe and China.

Dow Jones Industrial Average 1 Month Chart


The S&P 500 Index (SPX) changed little, shedding just 0.027 points to close at 1341.45 with financials advancing 0.8 percent after four days of losses. However, energy emerged on top among the index’s 10 business groups. JP Morgan Chase (JPM) rose 1 percent ahead of its quarterly result on Friday.

 

The NASDAQ Composite (COMP) lost 14.35 points, or 0.49 percent, to close at 2887.98. Network equipment maker Adtran Inc (ADTN) slumped 15.4 percent on Q3 revenue warnings. Ciena (CIEN) lost 7.9 percent while Juniper Networks (JNPR) shed 1.1 percent.

Decliners outpaced advancers on the NYSE.
Oil prices for August delivery gained $1.90 to close at $85.91 a barrel.
Gold futures for August delivery dropped $9.30 to $1,571.60 an ounce.

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