Another day of triple digit losses yesterday from both the Dow and the TSX, paired with rumors and worries regarding the future of Lehman Brothers Holdings Inc. caused an overall flight to quality of Government backed bonds in both the U.S. and Canada. Yields were lower by 0.11-0.09% in the U.S., with the bellwether 10-year U.S. Treasury declining to 3.59%, touching lows not seen since April of this year. Canadian government bond yields declined 0.04-0.01% basis points across the curve, causing a slight steepening in the shape of the curve.
While no major economic news is out this morning, there is enough market activity to keep everyone busy. We are seeing some reversal from yesterdays Treasury moves after Lehman Brothers announced plans to shed assets including a majority stake in its asset management unit and also its commercial real estate holdings. 3rd quarter losses were reported to be 3.9 Billion or almost 6$ per share. Yields in the U.S. Treasury are higher by 0.11% to 0.06%.
While no major economic news is out this morning, there is enough market activity to keep everyone busy. We are seeing some reversal from yesterdays Treasury moves after Lehman Brothers announced plans to shed assets including a majority stake in its asset management unit and also its commercial real estate holdings. 3rd quarter losses were reported to be 3.9 Billion or almost 6$ per share. Yields in the U.S. Treasury are higher by 0.11% to 0.06%.
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