Treasuries Move To The Downside Following Strong Economic Data
WASHINGTON (dpa-AFX) - Following the rebound seen in the previous session, treasuries moved back to the downside as trading resumed on Monday.
Bond prices regained some ground after an initial drop but remained firmly in negative territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 4.1 basis points to 1.720 percent.
The weakness among treasuries came as the release of strong U.S. economic data reduced the appeal of safe havens such as bonds.
The Labor Department s closely watched jobs report, which was released while the markets were closed on Friday, showed employment in the U.S. spiked by much more than expected in the month of March.
The Biggest Concern Is Stagflation - Factory Orders Tumble As Services Surveys Signal Soaring Inflation
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Calculated Risk: ISM® Services Index increased to all-time high of 63 7% in March
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ISM®
Construction was the fifth-highest growing sector in the report.
“Residential new home construction demand continues to outpace supply.
Construction companies reported the highest price increases for materials and services in March of all 18 services industries.
“All-time high” was the buzz phrase in a monthly economic report meeting for industries like construction, rental, warehousing and others. Anthony Nieves, chair of the Institute of Supply Management (ISM
®) Services Business Survey Committee, delivered the March services sector report on April 5. The PMI
®, or the Purchasing Managers’ Index, is a set of economic indicators based off surveys of private-sector companies.
“The Services PMI