Treasury Yields Rise as US blue-chips end losing streak

(Bond Market Update for May 10th, 2012) The bid-to-cover ratio, a gauge of investor interest that compares the number of bids received to the amount of securities offered, was recorded at 2.73 compared with the 10 previous sales average of 2.67.

Yield on current 30-year Treasury Bonds rose 3 basis points, or 0.03 percentage points to 3.05 percent, after rising as much as 8 basis points during the day’s trading. It had dropped to 2.98 percent Wednesday, a level not seen since Feb 2. Yield 10-year note surged six basis points, or 0.06 percentage points, to 1.88 percent, biggest single-day rise since April 3.

Bond Funds were also down on the day as  the iShares Barclays 20 Year Treasury Bond ETF (TLT) lost 35 cents, down 0.29 percent, to close at $118.52, while the Vanguard Total Bond Market ETF (BND) shed 5 cents, or 0.06 percent to settle at $83.89.

US stocks ended mixed Thursday with blue-chips breaking their longest losing streak in nine months followed by a dip in jobless claims though investors remained cautious over Greece’s possible exit from the European Union.

The Dow Jones Industrial Average (DJIA) climbed 19.98 points, or 0.2 percent, to 12,855.04, breaking a six-day losing spree. 19 of the blue-chip’s 30 components ended lower with computer networking gear-maker Cisco Systems Inc (CSCO) slumping 10 percent, its biggest drop in 15 months.  Another Dow component IBM Corp (IBM) also slipped, dragging the index down from the day’s high of 12932 points.

The S&P 500 Index (SPX) rose 3.41 points, or 0.3 percent, to 1357.99 with utilities advancing the most among the 10 industry groups while technology closed lower.

The tech-heavy NASDAQ Composite Index (COMP) bucked the trend to close 1.07 points, or 0.9 percent, lower at 2933.64, its third straight day of losses.

For every stock declining, more than two advanced on the NYSE.

Oil prices for June delivery gained 27 cents to close at $97.08 a barrel.

Gold futures for June delivery rose $1.30 to $1,683.90 an ounce.