Traders took bonds higher early yesterday, but the move stalled and prices stuck to familiar territory.
Municipals moved 1/8 to 1/4 point higher, while futures moved up about 10/32 after early signs of economic weakness were seen in the construction sector. Soon after the start of trading, it was reported that August construction spending fell 1.1%, to an annual rate of $456 billion. The originally reported 0.5% decline in July construction spending was revised to a 0.1% gain. The market made the gains despite the clash in Russia over the weekend. This surprised some who expected bonds to sell off if violence broke out.