Treasuries reverse longest drop since 2006, US stocks fall


(March 2oth, 2012) Treasuries climbed today, pushing 10-year yields down from near four-month highs and snapping a nine-day losing streak not seen since 2006.

The benchmark 10-year securities rose, paring the day’s earlier losses in what would have been declines for the 10-th consecutive day, and the longest streak since 1985. The market took a break after testing the 2.4 percent level yesterday as the Fed bought $1.97 billion of Treasuries to keep borrowing costs down. Yields on 10-year notes shed 0.02 percentage points to end at 2.36 percent. Yields on 30-year bonds dropped three basis points to 3.44 percent.

The iShares Barclays 20 Year Treasury Bond ETF (TLT) added 0.44 points, or 0.40 percent, for the day, while the Vanguard Total Bond Market ETF (BND) gained 0.0200 points, or 0.02 percent over yesterday’s close.

US stocks retreated Tuesday, with the S&P 500 paring gains built up in the last three sessions as China growth fears overshadowed an upbeat US housing market. The pull back wasn’t surprising as the indexes were moving toward historic highs.

The Dow Jones Industrial Average (DJIA) sank 68.94 points, or 0.5 percent, to 13,170.19, after losing nearly 116 points in early trade, with heavy-equipment maker caterpillar (CAT) dropping the most. Walt Disney Co (DIS) also slipped 0.5 percent after the entertainment giant said science fiction film “John Carter” may lose $200 million. Bank of America Corp (BAC) led the blue-chip benchmark’s gains, adding 2.9 percent for the day, after the bank announced it won’t issue more shares in a secondary offering.

Lions Gate Entertainment Corp (LGF) jumped 7.2 percent ahead of the title “The Hunger Games” release.

The S&P 500 Index (SPX) dropped 4.23 points, or 0.3 percent, to 1405.52, after touching a 52-week high on Monday. Financials advanced the most while industrial and energy stocks fared the worst among the 10-industry index.

The tech-heavy NASDAQ Composite (COMP) shed 4.17 points, or 0.1 percent, to close at 3074.15.

For every stock advancing, less than two stocks fell on the NYSE.

Oil prices for April delivery slipped $2.48 to close at $105.61 a barrel.

Gold futures for April delivery dropped $20.30 to $1,647 an ounce.

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