Crude futures traded down Wednesday, after touching a record $99.29 in overnight trading. The Energy Department announced crude stockpiles fell by 1.1 million barrels on Wednesday morning, a bullish figure for crude, as forecasters expected an increase of 800,000 barrels. After initially moving higher, January crude was down $1 to $97.02. The dollar also fell to an all-time low versus the euro, another reason the crude contract was tradingup in terms of the dollar. Meanwhile, the U.S. 10-Year Treasury rallied in price, pushing yields below 4.0% for the first time since 2005. "What we're seeing is a panic demand. Liquidity is a great problem," said David Ader, head of U.S. government bond strategy at RBS Greenwich Capital. Investors ran for the safety into treasuries as all major indices traded lower Wednesday and uncertainty about U.S. economic growth came to the forefront of investors' minds.
Commentary: Global Long-Term Interest Rates at Low End of Historical Range • What Good Are Hard Assets?
ETFs: USO, AGG