Bonds Up On Chicago Fed Report

Just this morning, the Chicago Fed released its National Activity Index and the news was uninspiring. This 85-element diffusion index is a broad measure of nationwide economic activity across a wide spectrum of metrics and things appear to be less active. In August, the Index fell to 0.79 from 1.18 as analysts expected a nudge up to 1.19. Values above zero indicate an expanding economy while negative values indicate the opposite.

Treasury bond prices have moved upon the news and the Ten-Year’s yield has fallen a few basis points to around 0.65%. The Long Bond is resting around 1.40% and the Two-Year is a lofty 13 basis points. Gold is getting hammered with this morning’s $30 decline bringing the price down to around $1,919. Crude oil has slipped about a buck to $40.