The bond market advanced with the 10-year benchmark yield coming close to the lowest level in nearly three months manufacturing shrank across Europe and investors tried to second guess the non-farm payrolls report in two days.
Treasury Bonds dropped overnight with yield on 10-year notes tumbling 2 basis points or 0.02 percentage points, to 1.92 percent. The yield had dropped to 1.88 percent during trading hours on April 27, the lowest level since Feb 3.
The iShares Barclays 20 Year Treasury Bond Fund (TLT) rose 82 cents, or 0.70 percent to $117.25 for the day, while the Vanguard Total Bond Fund (BND) gained 13 cents, or 0.16 percent to close at $83.74.
US broad markets closed mostly lower Wednesday after Tuesday’s jump as investors compared weak private sector jobs report with mostly robust corporate results. Companies in the US added 119,000 workers in April; the ADB Employer Services report showed Wednesday, two days before the Labor Department publishes the private and public sector April payrolls data.
The Dow Jones Industrial Average (DJIA) dropped 10.75 points, or 0.1 percent, to close at 12,268.57. Alcoa (AA) was the biggest loser, while Bank of America (BAC) and JPMorgan (JPM) also weighed the blue-chip index down.
The S&P 500 Index (SPX) slipped 3.51 points, or 0.3 percent, to 1402.31 with energy faring the worst and consumer discretionary topping the gainer’s list among its 10 major industry groups.
The NASDAQ Composite Index (COMP) however, added 9.41 points, or 0.3 percent, to close at 3059.85, after Singapore-based industrial electronics company Flextronics (FLEX) and leading GPS device maker Garmin (GRMN) stocks zoomed following strong quarterly results.
Advancers just managed to outpace decliners on the NYSE.
Crude future prices for June delivery tumbled 94 cents to close at $105.22 a barrel.
Gold futures for June delivery dropped $8.40 to settle at $1,654 an ounce.