Bonds Stage a Comeback

Treasury bond prices are rallying today as the sell-off in Treasuries, overdone in the minds of many, seeks to claw back some lost ground. This morning’s only data-point was a report from the National Federation of Independent Businesses telling us that its Small Business Optimism Index failed to reach its estimated level of 97 last month by coming in at 95.8. Still, that’s an improvement over January’s level of 95. The Treasury will be selling $58B Three-Year notes this afternoon.

In the meantime, the Long Bond has gained more than a point in price and that has pushed the yield down to around 2.26%. The Ten-Year’s half-point rally has lowered its yield to 1.53% while the Two-Year is pretty steady at 16 basis points. Crude oil is little changed at just under $65 while gold’s $30 rally takes that price to $1,713. DJIA futures are up triple-digits.