Contact us (+ 7 (921) 446-25-10)
Texting is available for authorized users.
Please register or log in at the website.
Your request for online training has been sent. Cbonds managers will be in touch with you shortly. Thank you!

Treasures: Bonds gain on triple-digit Dow selloff

January 22, 2010 |

Bond prices rose Wednesday, reversing earlier losses, after a triple-digit Dow selloff on Wall Street.

What prices are doing: The benchmark 10-year bond gained 13/32 to 98-4/32, pushing the yield down to 3.60% from 3.65% late Wednesday. Bond prices and yields move in opposite directions.

The 30-year bond rose 17/32 to 97-28/32 and its yield was 4.50%. The 2-year ticked up 3/32 to to 100-10/32 and yielded 0.83%.

What's driving prices: Investors looked for safer assets after stocks tumbled, with the Dow falling more than 200 points, on a strong dollar and concerns that China had asked banks to halt lending for the month.

Falling stocks tend to boost government debt prices, as investors look to plunk their cash into safer, lower yielding assets like bonds.

Create the perfect bond portfolio
What analysts are saying: "This Wall Street fall today came at a time when a lot of people were on the same side of the boat -- the stock side -- now we have sudden rush to the bond side," said Michael Cheah, bond fund manager at AIG SunAmerica.

Investors are nervous, Cheah said, and will remain so as governments at home and abroad begin to pull out of the liquidity-boosting operations that have been in place for months.

"As we remove supports one piece at a time, there is a worry that something is going to go wrong," Cheah said.

Bonds 101
These concerns should keep bond prices elevated, Cheah said, because fundamentals remain weak despite the strong stock market performance over the past several months.

"In general, bonds should continue to do well barring inflationary concerns," Cheah said. "Right now, that doesn't seem to be an issue."


Similar news:
Cbonds is a global fixed income data platform
  • Cbonds is a global data platform on bond market
  • Coverage: more than 170 countries and 250,000 domestic and international bonds
  • Various ways to get data: descriptive data and bond prices - website, xls add-in, mobile app
  • Analytical functionality: bond market screener, Watchlist, market maps and other tools