Treasuries fall on stimulus speculations, Stocks up

(Bond Market Recap for July 13th, 2012) 30-year Treasury  Yields bounced from near-record lows amid speculations central banks around the world would take more action to stimulate growth. US debts also lost allure after a government report showed wholesale prices rose unexpectedly in June for the first time in four months.

The yield on the benchmark 10-year notes rose two basis points to 1.49 after Labor Department data showed producer price index gained 0.1 percent in June against a projected 0.4 percent decline call by economists. 30-year yield rose one basis point to 2.57 percent in late afternoon trading, New York time.

10 Year Treasury Bond 1 Month Chart


Bond Funds were mixed on the day with the iShares Barclays 20 Year Treasury Bond ETF (TLT) shedding 34 cents, or 0.26 percent, to end at $129.17 while the Vanguard Total Bond Market ETF (BND) added 1 cent or 0.01 percent to finish at $84.86.

TLT 1 Month Chart

US stocks closed higher Friday snapping a six-day losing streak after banking stocks rallied after JP Morgan Chase reported a stronger-than-anticipated second quarter profit despite conceding $5.8 billion in trading losses so far this year.  The Dow Jones Industrial Average (DJIA) zoomed 203.82 points, or 1.6 percent, to 12,777.09, up 0.4 percent over last Friday. Within the Dow, 29 of the 30 companies finished higher led by banking giant JP Morgan (JPM), up six percent after the nation’s largest bank reported $5 billion in losses in the second quarter.  PC maker Hewlett Packard (HPQ) was the only blue-chip loser, shedding 1.91 percent for the day.

Dow Jones Industrial Average 1 Month Chart

The S&P 500 Index (SPX) rose 22.01 points, or 1.7 percent, to 1356.77 up 0.2 percent on last Friday. Led by financials, all the 10 business sectors finished higher for the day. Refiner Phillips 66 (PSX) jumped 5.5 percent after Warren Buffett said Berkshire Hathaway has invested in the firm. Wells Fargo (WFC) rallied 3.2 percent after the bank reported 17 percent growth in profits for the quarter.

The tech-heavy NASDAQ Composite (COMP) added 42.28 points, or 1.5 percent, to close at 2908.47, off one percent over last Friday’s finish.

  • Advancers outpaced decliner 5-to-1 on the NYSE.
  • Oil prices for August delivery gained $1.02 to close at $87.10 a barrel.
  • Gold futures for August delivery rose $26.70 to $1,592.00 an ounce.
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