Equities Slip While Bonds Hang on Overnight

An attitude of caution hangs over markets this morning as an overnight sell-off in some foreign equity exchanges have overlapped into domestic markets. That tone is benefiting the Treasury market as prices continue to rally. Today’s quarter-point gain in the Ten-Year has pushed its yield down to around 62 basis points as the Long Bond rests at around 1.35%. Some more good news for the housing sector is anticipated a little later this morning when the National Association of Homebuilders is expected to announce that Existing Home sales in July rose by around 14%. In the meantime, crude oil is down less than a half-dollar to around $42.40 while gold has slipped by around $15 to $1,933. Futures on the DJIA have been bouncing around a bit but look to open somewhat in the red.