20000405

US Treasuries rise

NEW YORK: U.S. Treasury prices bolted higher on Tuesday as a huge midday sell-off in U.S. stocks sent money racing to the safety of government securites only to find Wall Street short of paper.

The yield on the Treasury bond, which moves in the opposite direction to price, tumbled to 5.75 percent -- a level not seen in 11 months. For a brief time, the bond yield was as low as 5.65 percent.

Wall Street dealers said when the technology-laden Nasdaq index sank a heart-stopping 13 percent, it triggered a safe-haven rush into Treasuries just as dealers were scrambling to find securities after the Federal Reserve reportedly bought nearly $10 billion in bills and notes for the Bank of Japan.

The blue-chip Dow Jones industrial average, hammered down over 4 percent at its session low, recouped most of those losses in afternoon trade to stand 0.65 percent lower.

Thirty-year bonds blasted over two full points higher as stocks crumbled, then eased as a degree of calm returned to the markets, up 24/32 on the session at 106-30/32, yielding 5.76 percent.

Ten-year notes were 17/32 higher at 104-15/32 to yield 5.89 percent, also well off their session highs.

In late trade, two-year notes were up 4/32 at 100-9/32 to yield 6.35 percent. Five-year notes were up 13/32 at 98-27/32, yielding 6.17 percent.

Analysts said while shorter-dated issues benefitted from a flight-to-quality asset allocation out of stocks, longer-dated Treasuries were also boosted by hopes stock declines would reduce the need for significantly higher interest rates to rein in the still-booming U.S. economy.-Reuters

Gold soars

NEW YORK:COMEX June gold up $1.30 at $281.70 an ounce, trading $278.40 to $281.80. Spot bullion quoted at $278.80/9.80, up from late fix at $276.85 and close at $277.70/8.70. Gold snaps out of early doldrums, inspired by silver recovery. Bullion market shakes off news that Austria sold 30 tonnes of gold and plans to sell 60 more tonnes by 2004 under limits from Sept 26 Washington Agreement capping European central bank sales.-Reuters

Platinum higher

NEW YORK:NYMEX Active July platinum up $15.10 at $504.80, its highest since Feb 22. June palladium up $8 at $590. Hefty platinum move comes on light volume, led by fund buying. Market still awaiting word on deliveries from key-producer Russia. -Reuters

Silver rises

NEW YORK:May silver up 10.3 cents at $5.16 an ounce, traded $5.015 to $5.165, highest in nearly two weeks on Tuesday at midday session.Spot silver at $5.11/13, compared to Monday's $5.02/04 close and Tuesday's fix of $4.99. May silver busts above chart resistance at $5.10, scattering sellers as funds bought in mostly technical trade. -Reuters

Copper down

NEW YORK:Comex May down 0.40 cent at 79.85 cents a lb, trading between 79.40 and 80.50 cents. Back month July off 0.60 cent to 80.30 cents. The market eases amid nervousness related to hedge fund liquidation and volatility in U.S. financial markets, floor traders say. Copper finds light commission-house support as prices graze intra-day lows at 79.40 in May. In London, three-months copper rests at $1,754 a tonne, down $2 after kerb trading.-Reuters