Treasury 10-year notes sank for the ninth day, the longest stretch since June 2006, as investors bet on US recovery and dumped Treasuries for more risky assets.
The central bank could hike interest rates sooner than 2014 if the economy improves at a faster rate than expected, observed Fed Bank of New York President William Dudley. Another round of quantitative easing is becoming more and more unlikely with each passing day, analysts noted. 10-year note yields rose 9 basis points to 2.39 percent. The Fed bought $5.1 billion of debt maturing between 2020 and 2022 as part of its plan to keep borrowing costs low.
The iShares Barclays 20 Year Treasury Bond ETF (TLT) shed 1.32 points, or 1.18 percent, for the day, while the Vanguard Total Bond Market ETF (BND) lost 0.22 point, or 0.27 percent over Friday’s close.
US stocks extended last week’s gains Monday as moderate homebuilder’s data indicated the sector’s recovery and the NASDAQ got a boost on Apple’s dividend plans. Tech stocks led the advancers though some of the bellwethers retreated.
The Dow Jones Industrial Average (DJIA) added 6 points, or 0.04 percent, to 13,238.98, up more than 8 percent since the beginning of 2012. Technology, financials and energy stocks were the day’s top gainers. Both American Express (AXP) and JPMorgan Chase (JPM) gained more than 1 percent while Bank of America (BAC) lagged the Dow, closing 2.8 percent lower. The Dow shed its early losses for the day after Wells Fargo (WFC) and National Association of Home Builders said their builders’ sentiment index remained at their highest level in nearly five years. 18 of the 30-compent index ended higher.
The S&P 500 Index (SPX) climbed 5.6 points, or 0.4 percent, to end at 1409.75, a near four year high. Tech stocks advanced the most, while only utilities in the 10-sector index slipped.
The tech-heavy NASDAQ Composite (COMP) closed up 23.1 points, or 0.8 percent, to close at 3078.32, it’s highest since Nov. 2000. Apple’s (AAPL) shares closed at $601.1, up 2.7 percent, after the company announced quarterly dividends of $2.65 a share. However, Microsoft Corp. (MSFT) shed 1.2 percent while Hewlett-Packard Co. lost 0.6 percent.
For every stock declining, nearly two stocks advanced on the NYSE.
April oil futures gained $1.95 to close at $107.06 a barrel.
Gold futures for April delivery lost $3.70 to close at $1,655.80 an ounce.