Treasuries Finish Higher
Treasuries closed higher Monday, recovering smartly from early weakness as a pullback in equities from opening gains appeared to drive some flight to safety... 10-year note rose 07/32 to 99-25/32 for a yield of 4.77%... 30-year bond climbed 13/32 to 99-26/32 for a yield of 5.01%... The recent asset allocation shift out of risky assets into bonds reflects concerns that the deterioration in the market for securities tied to subprime mortgages could hurt liquidity for speculative arenas broadly speaking... Elsewhere today, crude oil futures rose modestly while gold futures eased... The dollar index rallied and could break out from a bullish double bottom pattern in the coming days that would signal the likelihood of further strength.