10 Year Treasury is flirting with 2.90% yield, a significant psychological and technical barrier. Which of course means that yields are rising, which of course means that the Fed’s security purchase program is being neutered. And interest rate sensitive stocks (home builders, financials, REITs, ETFs) are taking a beating.
Stocks fell again today, with the S&P 500 Index heading for its first four-day decline of the year, as energy shares declined and investors waited signals this week on the Federal Reserve’s stimulus plans. The S&P 500 dropped 0.5 percent to 1,647, heading for its first four-day decline of the year. The Dow Jones Industrial Average slid 65.05 points, or 0.4 percent, to 15,016.42. Trading in S&P 500 stocks was 14 percent below the 30-day average at this time of day.
The S&P 500 declined 2.1 percent last week and the Dow average lost 2.2 percent, the largest weekly drop in 14 months, amid speculation the Fed will pare its bond-purchase program as the economy recovers.
Assistant State Treasurer
Chief Investment Officer
State of Louisiana
Department of the Treasury