The 30-year Treasury bond slid in price by 05/32 to 115-09/32, pushing up its yield to 4.37%. Greenspan's comments raised market speculation that the end of the Fed's tightening cycle may not be as close at hand as many had expected. When interest rates rise, it makes borrowing more expensive and thus pressures the bond debt markets.
The 10-year note fell in price by 07/32 to 100-17/32 for a yield of 4.18%. The 10-year yield has continued to find technical support at the 4.15% level.
Meanwhile news hit that the University of Michigan's consumer sentiment index fell to 89.1 in August, compared to a preliminary 92.7 reading for August and the 96.5 final reading in July. Market players saw the drop as disappointing. The index measures consumer confidence and is used as an indicator of U.S. economic growth.