Treasuries Prices Fall & The Dow Hits High On Greek NewsFebruary 21st, 2012 by Marc Prosser
The Dow breached 13,000 on an intra-day basis, but closed at 12,966 – rising 15 points on the day. The Dow touched its highest level since late 2008. The S&P was nominally higher and the Nasdaq closed a tiny bit down. The market rose significantly in the beginning on news that the powers that be in Europe had approved the $170 billion bailout package for Greece.
The Treasury market reacted strongly on the news. The yield on the 10-year treasury rose to a high of 2.08%, closing at 2.05% – 0.05% higher. Breaking and closing above a 2.0% yield is psychologically important for the market. One market commentator on Twitter mentioned that the last time Greek got a bailout, the 10 year was around 2.4%. After the bailout yields climbed and spent several months at over 3.0%.
As one would expect, the two largest bond ETFs, BND and AGG, were both down (less than 0.15%). However, the ETF that tracks long-term treasury prices TLT, lost 1.1% of its value.
Highlights Form The Equity market:
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