29 August 2001, 11:49 US Credit Markets Buoyed By Weak Consumer Confidence
August U.S. Consumer Confidence was reported at a weak 114.3, prompting
treasury yields to tumble and spread product to tighten. The 114.3 index
reading was in direct contrast to the expectation for an increase to
117.5 and the July reading of 116.3. The surprise drop in consumer
confidence had the immediate effect of pushing treasuries to progressive
new intraday highs. Equities were distressed at the low confidence data
and began to move lower immediately. This gave the cash market an
enormous flight-to-quality bid which held throughout the session.
Treasuries came off their best levels in mid afternoon amidst chatter of
profit taking. Nevertheless, treasuries had a remarkably positive day
with yields ending lower across the curve.
© 1999-2024 Forex EuroClub
All rights reserved