(Bond Market Recap for September 5th, 2012) Yields on Treasury securities rose from almost one-month lows after reports suggested the European Central Bank may embark on an unlimited sovereign debt-purchase, easing demand for US securities.
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10 Year Treasury Yield – 1 Month Chart
Bond funds were mixed on the day with the iShares Barclays 20 Year Treasury Bond ETF (TLT) loosing 60 cents, or 0.47 percent to end at $126.72, while the Vanguard Total Bond Market ETF (BND) remained unchanged over yesterday’s close at $84.94.
TLT 1 Month Chart
US stocks closed nearly flat Wednesday with blue-chip shares ending slightly higher as Wall Street decided to wait and watch ahead of tomorrow’s ECB all-important policy meeting. The Dow Jones Industrial Average (DJIA) climbed 11.54 points, or 0.1 percent, to 13,047.48, after trading in a narrow 77-point range. The breadth within the 30-stock blue-chip index remained positive with 18 stocks finishing higher, led by Alcoa (AA), Walt-Disney (DIS) and Boeing (BA).
Dow Jones Industrial Average 1 Month Chart
The S&P 500 Index (SPX) shed 1.5 points, or 0.1 percent, to 1403.44 with utilities faring he worst and materials pacing the gainers among its 10 business groups. S&P-500 component FedEx Corp (FDX) slid nearly two percent after the company cut 2012 profit forecasts, citing weak global economy. Shares of rival UPS (UPS) were also hit on the news. The NASDAQ Composite (COMP) reversed its winning ways, shedding 5.79 points, or 0.2 percent, to close at 3069.27. After plunging to a an all-time low yesterday, social media site Facebook (FB) jumped 4.8 percent after CEO Mark Zuckerberg said he wouldn’t start selling his holdings for at least another year.