Treasury Auction
Stocks started up, went way down, and ended up 90 points.
Bonds got killed today as a Treasury auction didn’t go as well as it could.
The Dollar, oil and gasoline went sideways. Oil supply appears to be at a high point right now.
Gold rallied and ended up again today.
In the news today….
Good News?? – Durable Goods – rose 3.4% over the previous month. Is this a change in trend or just a blip? I think it’s a blip. Most of the gain was in military orders. But, it nice to see something going up.
Mortgage Applications – rose 3.2%. This is caused by the new LOW mortgage rates. 3/4 of the applications were for REFIs.
30 Year Mortgage Rate – is 4.63%. This is a RECORD LOW (only since records are being kept since 1990.)
Not so good news – 5 Year Treasury Auction – of $24B didn’t go well. It was not subscribed as much as people hoped, and caused the initial stock market rally to fade, and then go way down. (Stocks rallied at the end of the day.) Shows how much influence bonds have on stocks. If you remember the FED said it was going to start purchasing longer dated Treasuries. This auction wasn’t one of them, but the folks with money are voting with their money. What’s the problem? Inflation caused by massive spending, bailouts, etc – just the printing of money worries people with money.
Here are the last numbers for today:
Dow Jones 30 Industrial – 7750 (up 90 points)
10 Year Treasury Bond – 2.77% (up 0.12%)
Euro – $1.3593
Gold – $938 (up $12)
Oil – $52.77 (down $1.21)
Gasoline – $1.50 (down $0.01)
