(Bond Market Wrapup for November 21st, 2012) – Treasuries fell, pushing yields up for the third day as optimism over positive US economic news eclipsed renewed questions over Greece’s solvency.
European finance ministers failed to break a deadlock over the details of a debt-reduction package for Greece and will regroup on Monday as creditors led by Germany refused to commit more money.
Consumer sentiment in November edged up to 82.7, data compiled by University of Michigan/Thomson Reuters showed. Also weekly jobless claims dropped to 410,000 as fewer Americans filed for unemployment benefits last week.
The yield on the benchmark 10-year Treasury notes rose two basis points, or 0.02 percentage point, to 1.68 percent while yield on 30-year Treasury bonds climbed one basis point to 2.83 percent.
Bond funds traded lower with the iShares Barclays 20 Year Treasury Bond ETF (TLT) dropping 7 cents, or 0.05 percent, to $124.33 while the Vanguard Total Bond Market ETF (BND) fell 9 cents, or 0.11 percent to $84.73.
US stocks closed modestly higher Wednesday hitting a two-week high after a ceasefire deal was announced between Israel and Hamas with the S&P 500 and NASDAQ Composite extending gains into the fourth session.
The Dow Jones Industrial Average (DJIA) climbed 48.38 points, or 0.4 percent, to 12,836.89 with 24 of its 30 stocks closing higher for the day.
Shares of Hewlett-Packard (HP), Microsoft (MSFT) and Bank of America (BAC) were among the biggest gainers. HP Rallied nearly two percent after slipping 12 percent yesterday.
The S&P 500 Index (SPX) rose 3.22 points, or 0.2 percent, to 1391.03 with energy pacing the gains and utilities the sole laggard among its 10 business groups.
Salesforce.com Inc (CRM) jumped 8.8 percent after the largest web-based customer-management software provider projected sales and profit that were in line with street expectations.
Deere & Co (DE) slumped 3.7 percent after the agricultural equipment-maker reported earnings that missed analysts’ expectations.
The tech-heavy NASDAQ Composite Index (COMP) added 9.87 points, or 0.3 percent, to close at 2926.55.
For every stock declining, more than two advanced on the NYSE.
Oil prices for January delivery gained 63 cents to close at $87.38 a barrel.
Gold futures for April December delivery climbed $4.60 to $1,728.20 an ounce.