NEW YORK Treasury prices were flat at the close and stocks were moderately higher, as investors assumed a more realistic philosophy on the war in Iraq.
I think peoples expectations are more realistic, so were not seeing the big swings of euphoria or depression that we were seeing over the last few days, said Gus Faucher, economist for Economy.com.
Last week, stocks enjoyed their biggest gains in 20 years and bond prices plunged as the ground war got going. But after United States and United Kingdom forces encountered Iraqi resistance over the weekend, stocks took a dive on Monday and bond prices were lifted. Today, markets were less volatile.
Theres nothing decisive happening today, so until that happens, things are kind of on hold, Jade Zelnik, chief economist for Greenwich Capital Markets Inc., said earlier today, referring to the impending showdown between U.S.-led ground troops and the Iraqi forces guarding Baghdad. Its primarily a wait and see.
Zelnik said this mornings economic indicators had only a limited impact on the bond market. The Conference Board announced the consumer confidence index skidded two points this month to 62.5 from an upwardly revised 64.8 in February. The National Association of Realtors reported existing home sales fell 4.3% in February to a seasonally adjusted annual rate of 5.84 million units.
The 30-year bond was down 4/32 recently to yield 4.936% while the 10-year note was up 2/32 to yield 3.959%.
The five-year note was up 1/32 to yield 2.931%, the three-year was down 1/32 to yield 2.087%, and the two-year was unchanged to yield 1.657%.
The three-month bill was down 1/32 to yield 1.178% and the six-month was unchanged to yield 1.181%.
The Dow Jones Industrial Average was up 66 points and the Nasdaq was up 22.
