Economist's Insights

Today’s Trading Activity – Quiet Start to Quiet Week Ends With Treasury Curve Flatter on Lower Yields

Jul 17, 2017

Stocks remained positive for most of Monday morning but reversed into a slow downtrend shortly after lunch. By the close, the three major indices were mixed but less than 0.05% changed. Treasury yields partially pared an overnight drop by mid-morning but turned lower with stocks and remained there for the entirety of the afternoon session. The 2-year yield closed at 1.36% (unchanged) while the 10-year yield settled down 1.8 bps at 2.31%. The Dollar was essentially flat as gains against the Yen and British pound were offset by losses against the Euro. Commodity prices were mixed as struggles in the energy and agricultural space offset gains in metals. The various moves in these markets told the sector story within the S&P. Lower Treasury yields helped the utilities and real estate sectors but hurt financials. Weaker prices for energy commodities hurt companies in that sector while the bounce in metal prices supported shares of materials companies.