Treasuries rise after Eurozone, ISM data, stocks rally into Q2April 2nd, 2012 by David Waring
Treasury prices moved up on improved US manufacturing number following a weak factory output reading from Europe. Yields on US ten-year notes dropped 0.03 percent or 3 basis points, to 2.19 percent after a report showed manufacturing activity in the 17-member eurozone contracted further in March. Yields on 30-year Treasury bonds dropped to 3.34 percent as the central bank gets ready to buy $12 billion in Treasuries this week.
The iShares Barclays 20 Year Treasury Bond ETF (TLT) added 0.33 points, or 0.29 percent over Friday’s close, while the Vanguard Total Bond Market ETF (BND) dropped 0.28 points, or 0.34 percent for the day.
US stocks closed higher Monday, extending gains after latest US manufacturing numbers stretched Wall Street’s best first quarter since 1998. The Dow hit its highest level since 2007 after the Institute of Supply Management’s index on manufacturing activity rose to 53.4 in March, a little better than the market’s had expected.
The Dow Jones Industrial Average (DJIA) rose 52.45 points, or 0.4 percent, to 13,264.49, after March manufacturing report showed prices rose slower-than-expected, easing immediate inflation concerns. 23 of the 30 components gained on the Dow with bank of America Corp (BAC) leading the pack.
The S&P 500 Index (SPX) rose 10.43 points, or 0.7 percent, to 1418.90 with the natural resources sector gaining the most. All 10 components of the index ended higher for the day. Direct cosmetics seller Avon (AVP) topped the gainer’s list, jumping 17 percent, after it said it rejected a $10 billion dollar bid from beauty-products supplier Coty Inc.
The tech-laden NASDAQ Composite (COMP) rose 28.13 points, or 0.9 percent, to 3119.70 after Apple Inc (AAPL) added 0.1 percent in choppy trading.
Advancers outpaced decliners by 3-to-1 on the NYSE.
Oil future for May delivery gained $2.21 to close at $105.23 a barrel.
Gold futures for June delivery rose $7.80 to $1,679.70 an ounce.