19 March 2001, 12:49 US February core Producer Price Index fell 0.3%
February core Producer Price Index fell 0.3% and February
industrial production fell 0.6% and these larger-than-expected drops
helped treasuries rally. The market liked the idea of inflation fears at
bay. Then the preliminary University of Michigan sentiment index came in
stronger-than-expected at 91.8, up from 90.6 in February. Prices chopped
around a bit but the street was overly long and the ultimately
bond-unfriendly numbers forced selling. The only significant flows were
some yield curve liquidations, characterized as profit taking by a
trader. A brief end-of-day uptick was precipitated by spec buying on
renewed equity weakness. Also worrying traders was the triple witching
day in stocks.
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