Yeah, but did they really stop trading for about 10 mins.? Was there a sudden imbalance in orders that took that long to sort it out? Japan and Germany were having trouble selling bond issues this week. Is the bond bubble bursting now. I was looking at maybe doing another refi to try and lock in lower rates. Because of my situtation, the best I could get a couple weeks back was 5.5% and I was waiting for 5.375% to make it worth my while. I should have taken the 5.5% and been happy with the about $65 a month it would have saved. With bonds tanking, I won't been doing a refi any time soon. Could this been the beginning of the end for the housing market? Or will there be one last push as people rush to buy before rates go even higher. Finally found the following.
ISM data, demand risk hit Treasurys
ISM non-factory at 60.6; U.S. jobless rate at nine-year high
By Rachel Koning, CBS.MarketWatch.com
Last Update: 12:12 PM ET July 3, 2003
WASHINGTON (CBS.MW) - Broad selling washed
over the Treasury market Thursday after a report
showing a surge in the service economy dominated
weak labor market statistics and as global bond
deals met with poor demand.
A Japanese government note sale joined the
ranks of European issues this week in drawing
lackluster demand. The reaction of investors
might indicate many are shunning the safety
play in favor of higher yields elsewhere. See
related story.
The impact was filtering into U.S. bond trade
where yields have been steadily rising since the
Fed's interest rate cut last week. Many believe
the interest-rate cutting cycle has ended and
that the Fed, without a stated commitment to
buying longer-term government securities to
depress interest rates, is likely to sit back and
let its stimulus have a chance to work.
Yields rise when prices fall, in part because
higher yields are demanded to compensate for
more risk, including inflation risk.
Adding to bond market pressure, the ISM's
non-manufacturing index rose to 60.6 percent in
June from 54.5 percent in May, the best reading
since September 2000 and the third month in a
row over 50 percent.
Readings over 50 percent indicate that a majority
of firms say business is improving or least
getting no worse. Read the full release.
Earlier, short-term Treasury securities rallied on
word the U.S. labor market continued to bleed
jobs in June, driving the unemployment rate to a
nine-year high.
Gaining initially after the jobs report, the 2-year
note was recently priced 1/32 lower at 99 20/32,
yielding 1.31 percent after 1.24 percent in the
previous session.
A benchmark 10-year Treasury was down 28/32
at 99 27/32 to yield ($TNX: news, chart, profile)
3.64 percent vs. 3.54 percent at the previous
U.S. close.
The 30-year long bond tumbled 1 point and 13/32
at 110 29/32 to yield 4.67 percent, up from 4.61
percent.
Bond markets close one hour early Thursday, at
2 p.m. EDT, ahead of the Fourth of July holiday.
Stock exchanges close at 1 p.m. All U.S.
financial markets are closed Friday.
In the currency sector, the U.S. dollar rose against
its major trading partners, climbing 0.1 percent to 118.25
yen while the euro declined 0.4 percent to $1.1484.
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