Friday was triple witching for the equity markets, but all the action was in long term interest rates. 2.54% appears to be the line-in-the-sand for the 30-year Treasury, which is where it closed on June 3rd and June 20th. The corresponding TLT (iShares 20+ Year Treasury Bond ETF) closes were 132.44 and 132.89, respectively.
Related headlines from the past week
- Auto sales drove U.S. growth in May
- U.S. Existing-Home Sales Rose in May
- US Dollar Index Descended to a Three-Month Bottom
- ECB Mulling Stimulus Gets Hint That Economy’s Worst Has Passed
Clearly the market sees, at least as of Friday, that low interest rates have done their job and consumers are buying, again. Adding fuel to the fire (admittedly a rather wimpy fire at the moment!), is evidence that Europe is coming out of its doldrums and the U.S. dollar is weakening, which helps large cap sales. Europe accounts for about 8% of S&P 500 revenue and international as a whole, 40%.