Treasury Action: Wall Street's rally has run out of steam
Treasury Action: Wall Street's rally has run out of steam and profit taking from record highs has knocked the indices lower. After testing 29,000, the Dow has dropped over 100 points to 28,857, and the NASDAQ has lost the 9200 handle. European bourses also closed with modest declines. Treasury yields have richened into the weekend, reflecting some caution. The slippage in earnings in the jobs report and the lack of inflation pressures is seeing the long end of the curve outperform. The bond has now dropped 4.5 bps to 2.28%, back where it began the week. The 10-year is off 3.5 bps to 1.82%, and the 2-year is down 1.2 bps at 1.566%, both a little cheaper than on Monday. The markets will look ahead to the start of earnings season next week. Most are expecting good results given easy comparisons.