Investing
ISM Data Rocking Bond Yields Higher After Jobs Data (TLT, TBT)
Published:
Last Updated:
The Institute for Supply Management has issued its reading for January non-manufacturing and the data is strong. Very strong. At 56.8, this is the best reading in almost a year. Dow Jones was only calling for a reading of 53.1.
The business index was 59.5 versus 55.9 in December. Employment showed the biggest gain to 57.4 from a prior December reading of 49.8 and prices rose only to 63.5 from 62.0 in December. Even new order picked up to 59.4 from 54.6 in December.
The news this morning, particularly after the stellar jobs numbers, is really hurting longer-dated Treasury prices and driving yields higher. The Fed Funds Futures are signaling a much quicker rate hike scenario than just a week ago.
The iShares Barclays 20 Year Treasury (NYSE: TLT) tracks the Barclays Capital U.S. 20+ Year Treasury Bond Index and its price is down 2.3% at $116.39. The ProShares UltraShort Lehman 20+ (NYSE: TBT), which is double inverse the price action (intraday) is up a whopping 4.6% at $19.32 on the day.
JON C. OGG
Essential Tips for Investing (Sponsored)
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
