10-Year Yield Drops on Equities Rally; Dollar Declines Against Euro

U.S. 10-year Treasury bonds closed down by 10/32 at 97-21/32 with a yield of 4.81%, as U.S. equities rebounded from last week's massive selloff. The equity market bounce brought money out of fixed incomes and led the 10-year to have its biggest drop in 2 weeks .

The dollar continued to struggle against the euro down 0.4%.  Traders are hesitant on the dollar ahead of tomorrow's Commerce Department personal spending report, which is forecast to show slowing U.S. consumer spending. 

Crude oil futures slipped 0.3% today on speculation that Wednesday's crude inventories report will continue to show a build in energy inventories.

Gold futures added 0.6% today on the weakness of the dollar versus the euro. Gold generally moves opposite to the dollar and are used widely as hedges for each other.

Soybeans gained 1%, while corn futures rose 1.2%.

After a choppy start to the trading day, stocks finally managed to stage a notable rally during the afternoon. Last week, the Dow experienced its largest points drop in five years and the S&P 500 lost the most points in six years.  Click here for the rest of today's Stock Market Recap.

John Lee
Associate Editor
johnl@tradingmarkets.com

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