Bonds and Equities Rally Together

With no data scheduled for release until later this morning, Treasury and equity markets are both starting the week trying to regain some lost ground. In early trading, Ten-Year Treasuries are up about a quarter-point and that has pushed the yield down to around 84 basis points while the Long Bond’s half-point price gain puts that yield at 1.64%. The Two-Year is little changed at 15 basis points. Crude oil can’t catch a break and concerns over more supply have pushed the price down a little further today to about $35.36. Gold is up about $11 to $1,891 and DJIA futures are looking for a triple-digit green opening.

Later this morning, Markit U.S. will release its October Manufacturing PMI and that’s expected to be unchanged at 53.3. A similar report from the Institute of Supply Management should show a slight improvement over its September level. The Census Bureau is also expected to report that Construction Spending rose by 1% in September, a little slower than the prior month’s 1.4% growth. The FOMC meets Wednesday and Thursday.