As posted below, today was another momentous day in the bond pits. Further below are a few other noteworthy news items, with accompanying charts, that reveal very important but unreported market activities.

Regards - VHF

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Bond Market Close

John Jansen

June 4, 2009

Prices of treasury coupon securities are plummeting once more amidst violent convexity induced volatility.

The yield on the 2 year note has remained relatively stable relative to its peers as it has risen just 4 basis points to 0.95 percent. The carnage in the three year note is a little worse but not truly painful as the yield on that security has climbed 7 basis points to 1.51 percent. As we trek into the territiry of the 5 year note the markets trials and tribulations become self evident as the yield on that once pristine instrument climbed 14 basis points to 2.56 percent. The yield on the 7 year note rose 17 basis points to 3.32 percent. The 10 year note is the ugly duckling as its yield soared 19 basis points to 3.73 percent. The yield on the still investment grade Long Bond increased 16 basis points to 4.60 percent.

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Treasury Curve Hits Record Steepness Again

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Volume Explosion In Goldman Sachs' Commodities Index

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Retail Chain Store Sales Plummet