Greek debt worries return to bonds
Posted January 30, 2012
We’ve started off Monday with a bang in the Treasury pits, with Bond Yields dropping like bricks. Greek concerns hog the spotlight this morning and because of those concerns, investors are fleeing to safe haven treasuries, helping to put downward pressure on yields and mortgage rates this morning.
We closed Friday at a yield of 1.90, and we’ve opened at 1.83. Remember that there is an inverse relationship between the price of a bond and its yield, as one goes up the other goes down. So right now, due to demand we’re seeing prices increase and yields decrease.
Consumer spending decreased in December, giving us the lowest reading since June as consumers decide to tighten their wallets. Will this become a trend and create further headwinds for our economic recovery? Stay tuned. The big economic report of the week is Friday’s job number.