Bonds Weaker While Equities Rally

As investors continue to digest last Friday’s unexpectedly strong Jobs Report, Treasury prices are starting off the week a little lower as equity futures point to further gains. The price of the Long Bond has slipped about 5/8 of a point in early trading and that has pushed the yield up slightly to 2.39%. The Ten-Year’s price has slipped a little less, but that yield is up a basis point or two to 1.74%. The Two-Year is little changed at 18 basis points. Crude oil has slipped almost $2 to $59.82 while gold is off about $5 to $1,724. A little later this morning, Markit U.S. and the Institute of Supply Management will publish new PMI reports for Services and both measures are expected to show improvement.