Bonds ignore strong GDP number


Just a thought as the headlines pour in about the far stronger-than-expected GDP number - by suggesting a quicker pace of Fed tapering - being responsible for the rout in stocks today: Treasury prices flew higher, with the 30-year bond up a full point and its yield down 6 basis points to 3.72%. The 10-year yield dropped 5 bps to 2.60%.

TLT +0.9%, TBT -1.6%

Related ETFs: TBT, TLT, TMV, TBF, EDV, TTT, TMF, ZROZ, TLH, SBND, DLBS, VGLT, UBT, TLO, LBND, FSA, TYBS, TENZ, DLBL

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Comments (6)
  • Marco Mazzocco, CFA
    , contributor
    Comments (193) | Send Message
     
    All steepener unwinds from the last couple days. Perhaps Yellens nomination date being announced was bullish as well. We'll know tomorrow am if people saved alot of money or missed a huge trade.
    7 Nov 2013, 04:41 PM Reply Like
  • dancing diva
    , contributor
    Comments (2729) | Send Message
     
    Much of the GDP increase was due to higher inventories. This is the worst type of GDP growth.
    7 Nov 2013, 04:49 PM Reply Like
  • American in Paris
    , contributor
    Comments (5495) | Send Message
     
    Not necessarily.The real question is whether inventory growth was planned or unanticipated.

     

    You are making a sweeping generalization that isn't supported.
    7 Nov 2013, 05:19 PM Reply Like
  • Marco Mazzocco, CFA
    , contributor
    Comments (193) | Send Message
     
    We've had some strong ISM and PMI numbers which were showing jumps in new orders, so maybe the inventory is a reflection of that ?
    7 Nov 2013, 05:23 PM Reply Like
  • Tack
    , contributor
    Comments (16274) | Send Message
     
    Uhhh, did everyone fail to notice that the ECB cuts rates 0.25% today in a big surprise? There's part of your answer for the increase in Treasury demand.
    7 Nov 2013, 05:26 PM Reply Like
  • Marco Mazzocco, CFA
    , contributor
    Comments (193) | Send Message
     
    not liking those bonds too much now.
    8 Nov 2013, 08:51 AM Reply Like
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