NEW YORK (CNNfn) - U.S. Treasurys drifted lower early Monday despite a slightly stronger dollar as the impact of global market woes and a Russian political shake-up hang like dark clouds over the U.S. economy.
The 30-year Treasury issue opened in U.S. trading down 9/32 in price with the yield, which moves in the opposite direction, falling to 5.36 percent.
The bond also was boosted by news that North Korea had fired a missile off the Sea of Japan, raising the specter of market instability, which causes investors to flood into bonds.
Attention worldwide turned again to Russia Monday as the Communist-dominated Duma prepared to vote on whether to accept President Boris Yeltsin's naming Victor Chernomyrdin as prime minister.
A negative vote could send stock markets reeling worldwide.
Leadership concerns in Russia, a recent default on some of its debt and a move to let the ruble float lower against the dollar set off a barrage of worldwide concern about not only Russia's market but many other emerging markets worldwide.
That sparked a worldwide sell-off in stocks and led many investors to flock to the relative safety of Treasury bonds.
Ahead of that Duma vote, the German mark, which has been wavering in reaction to the Russian situation, was slightly lower against the dollar. The mark, which had improved overnight, traded at 1.7657 to the dollar.
The Japanese yen also pared its gains, but still was trading modestly higher at 141.68 to the dollar.
The Swiss franc, which as a safe-haven currency made sharp improvements last week in the midst of the market turmoil, was lower against the dollar. And the British pound was off from its four-month highs against the dollar set Friday.
On the economic front this week, U.S. investors will be eyeing Monday's report on new home sales for July and Tuesday's report on leading economic indicators. Foremost in many minds will be Friday's jobless report in the wake of this summer's strike at General Motors.
|
