Big Bad Bond Index Rises 3 Points, Lead By Wal-Mart (WMT) & GE

February 27th, 2012 by

The Big Bad Bond Index (BBBI), which tracks high grade corporate bonds, slightly rose closing at  1,151.27.  This means the average bond in the index was trading at $1,151.27, based on the last trade of the day. Twenty one bonds ended higher and six lower. The average yield fell 0.05% to 2.30%.

The biggest gainer on the day was General Electrics’ (GE) 5.25% coupon bond maturing 12/2017 which gained over  $18 per $1000 face value bond. Ironically, GE’s stock spent the entire day in negative territory following an announcement that its workforce had increased nearly 5% and a Bloomberg report that some important patents were expiring. Other large gainers included bonds from Wal-mart Stores (WMT) and Verizon (VZ).

One of the day’s losers (there were not many losers, and the losses were small)  of the day was Dupont (DD). Its 4.88% coupon bond maturing 4/2014 lost a little over $2. The bonds of Disney (DIS) and Hewlett Packard (HPQ) were down a smidgen.

The 2, 10, 30  year treasury bonds all gained value today. The yield on the 10 year lost 0.05% closing at 1.93%. The 10 year treasury and BBBI showed similar performance.

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