Bank Debt Hit Hard as Spreads Widen on Financial Selling |
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June 03, 2011 |
June 2011 Bond Updates
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A Moody’s rating agency warning over an albeit slim likelihood of a government default put government debt prices on the defensive and took away a slug of yesterday’s gains. Traders attempted a rally for riskier assets ahead of the market opening on Thursday only to get beaten back by further worries arising over the economy. Factory orders fell harder than expected while in-line initial claims did little to steady nerves ahead of Friday’s crucial employment report. On the basis of weakness within an earlier ADP survey of private employers many Wall Street houses have curbed their prediction for Friday’s number. Bond prices eased on Thursday but waning confidence in the financial sector meant that bank issues were expelled from many investors’ portfolios sending paper prices sharply lower.
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View more at: http://blogs.forbes.com/greatspeculations/2011/06/02/bank-debt-hit-hard-as-spreads-widen-on-financial-selling/
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