Treasuries fall as Greece inches towards debt-swap, US stocks surgeMarch 8th, 2012 by David Waring
Treasuries slumped for a second day as investors’ risk appetite increased, dampening demand for US government securities.
Yields on 10-year notes climbed 3 basis points, or 0.03 percent, to 2.01 percent while 30-year bond yields rose 0.04 percent, or 4 basis points, to 3.17 percent. It had hit 3.18 percent during the day’s trading, its highest level since March 1, ahead of tomorrows US payrolls report. Treasuries had rallied briefly earlier in the day however as the Fed purchased $5.1 billion of US securities maturing between Aug.2020 and Aug. 2021.
The iShares Barclays 20 Year Treasury Bond ETF (TLT) lost 1.17 points, or 1 percent, for the day, while the Vanguard Total Bond Market ETF (BND) shed 0.13 points, or 0.16 percent, over Wednesday’s close.
US stocks surged for the second trading session on Thursday as more Greek bond-holders agreed to accept losses on their investments as the deadline for the exchange of the history’s greatest debt-swap exercise, also key to Athens’ securing next-round of bailout money, passed. The deal is the final frontier Greece must clear before it secures the second round of €130 billion in bailout money from the International Monetary Fund and the European Union.
The Dow Jones Industrial Average (DJIA) climbed 70.61 points, or 0.6 percent, to 12,907.94, its second successive day of gains.
The S&P 500 Index (SPX) added 13.28 points points, or 0.7 percent, to end at 1365.91.
The tech-laden NASDAQ Composite (COMP) rose 34.73 points, or 1.2 percent, to 2935.69.
Advancers made up 84 percent of volumes, and for every stock declining four issues were higher on the NYSE.
Fast-food giant McDonald’s (MCD) retreated Thursday despite same-store sales rising 7 percent in Feb as the company listed several reasons that may slowdown Q1 EBIT growth.
Stocks of Green Mountain Coffee Roasters (GMCR) also slipped as Starbucks said it would “announce a new strategic initiative in the Premium Single Cup Category,” ignoring Green Mountains existing involvement with the Seattle-based chain in serving the popular K-cup versions.
Shares of AIG (AIG) ended lower following Treasury Department’s announcement that it’s selling $6 billion of AIG stock at a profit.
According to government data, first-time claims for unemployment insurance for the week ended on March 3 were higher over the prior week by 8,000 at 362,000.
Oil for April delivery was higher 56 cents at $106.16 a barrel.
Gold futures for April delivery rose by $11.80 to $1,683.90 an ounce, its second straight day of gains.