Interest Rate Roundup

Tuesday, June 05, 2007

Bonds on the ropes again as ISM services index comes in hot

Bond traders are having another tough go of it this morning, thanks to a strong report on the service sector of the economy from the Institute for Supply Management ...

* The overall non-manufacturing index jumped to 59.7 in May from 56 in April. That's the highest since April 2006.

* The new orders sub-index rose to 57.4 from 55.5, while the employment sub-index climbed to 54.9 from 51.9.

* Inflationary pressures built. The prices paid index jumped to 66.4 from 63.5. That's the highest reading since August 2006.

Long bonds were recently down more than a half point (17/32) to 108 13/32. Ten-year yields hit a new high for the move of 4.97%.


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