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Wednesday, March 24, 2010

Treasuries Sell-Off on Soverign Concern

Bloomberg reports:

The yield on the 10-year Treasury note rose to 3.85 percent, the highest since Jan. 8. The euro weakened against 12 of its 16 most-traded peers at 2:15 p.m. in New York and fell to a 10-month low against the dollar. The MSCI World Index of stocks in 23 developed nations slid 0.8 percent and the Standard & Poor’s 500 Index fell 0.5 percent, retreating from an 18-month high. The Reuters/Jefferies CRB Index of commodities dropped to a five-week low as oil slid 1.5 percent, copper lost 1.4 percent and lead tumbled 4 percent.

A record-tying $42 billion sale of five-year debt drew a higher-than-forecast yield and lowest demand since July from a group of investors that includes foreign central banks. France and Germany are nearing agreement on International Monetary Fund involvement in any aid package for Greece, according to a finance ministry official in Berlin, spurring concern the European Union won’t rescue the nation itself. The Portugal downgrade heightened concern that more European nations will struggle to fund swelling deficits.



Source: Yahoo