There are buyers in bonds this morning and YIELD on the 30-year (TYX.X) has taken out the recent lows set in January and this is a sign that the market is really starting to get defensive and perhaps losing further confidence in stocks. The 10-year (TNX.X) is following and has taken out its low YIELD of January 3, 2001.
Equity futures lower
For the past several months a strong bond market has spelled trouble for stocks and we're seeing some signs of that this morning in equity futures. Currently, S&P 500 futures are lower by 5, NASDAQ futures are down 29 and Dow futures are off 19. Fair Value today for the S&P 500 is $2.38 and buy programs are set at $4.07 and selling set at $0.55.
Economic numbers out
Jobless claims showed an increase of 39,000 ending February 22 to 372,000 while personal spending rose 0.7% and personal income increased 0.6%. Economists were expecting a rise in personal spending of 0.6% and personal income to increase 0.5%.
30-year Treasury Bond YIELD (TYX.X) Chart - last eleven months