Industry News
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Today’s Market Color
08/05/2011
Last Friday, the yield on the 10yr was hovering near 2.90% as markets waited for a debt to be hammered out. A lot has changed over the last week as a debt deal was finalized, stocks have been hammered and the 10yr yield sits at 2.45%. Recession fears have shaken markets worldwide, creating a week long flight to quality bid. However, this morning’s releases of the July non-farm payrolls report did provide some relief from the recent onslaught of gloomy economic news. The unemployment rate unexpectedly dropped to 9.1% from 9.2% as overall payrolls and both Private and Manufacturing payrolls produced better than expected results. The news has tempered the recent flight to quality bid as treasury prices are moving lower. Currently, the 10yr yield is at 2.449% (2.583% yesterday) and the 2-10 yield spread is at 216bps, flatter by 6bps since yesterday morning.
