WASHINGTON -- More good news than bad yesterday helped keep alive the mini rally in the Treasury long bond that began on Friday, traders said.
Late yesterday, the 30-year Treasury bond was quoted up 13/32 to yield 7.86%, after gaining 20/32 on Friday, pushing the yield down to 7.90% from 7.95% on the two previous days.
Falling precious metals and oil prices yesterday, among other things, helped keep the optimism that began Friday alive after the weaker-than-feared September employment report was released.
The Federal Reserve opted not to raise short-term interest rates after the report, and several market participants said they now expect the Fed to wait until November before its next move.
William Sullivan, director of money market research at Dean Witter Reynolds Inc., described yesterday's gain as a "follow-through on the buy-side" after Friday's jobs report.
However, Sullivan described the advance as a "temporary respite" in an otherwise bear market. Others concurred. Eugene Sherman, director of research at M.A. Schapiro & Co., described yesterday's gain as an extension of Friday's "dead-cat bounce."
Also late yesterday, the Treasury 10-year note was quoted up 7/32 to yield 7.65%.
Treasury Market Yields Previous Previous Tuesday Week Month3-Month Bill 4.99 5.07 4.696-Month Bill 5.51 5.59 5.161-Year Bill 5.96 6.01 5.632-Year Note 6.60 6.65 6.313-Year Note 6.91 6.96 6.605-Year Note 7.29 7.36 7.027-Year Note 7.46 7.51 7.2110-Year Note 7.64 7.67 7.4030-Year Bond 7.84 7.88 7.67
Source: Cantor, Fitzgerald/Telerate
Stock Market: The Dow Jones industrial average rose 55.51 points yesterday to close at 3876.83.
Foreign Exchange: In late New York trading yesterday, the dollar was quoted at 100.21 Japanese yen and 1.5445 German marks.
Commodities: The Commodity Research Bureau's index closed down 0.05 point yesterday at 227.88.