US Close Report 16 Oct 18:Recovery for US stocks fails - indices end at session lows

US sharemarkets remained volatile on Monday. Shares in Bank of America fell by 1.9% after reporting loan growth below that of its rivals. Defensive sectors were favoured by investors. The Dow Jones fell by 89 points or 0.4% after holding in a 238 point range. The S&P500 index fell by 0.6% and the Nasdaq index lost 66 points or 0.9%.

* US long-term treasuries rose modestly on Monday (yields lower). Economic data was softer-than-expected while  investors still favoured exposure to safe-haven assets like government bonds and gold. This week, US Treasury will debut a two-month bill issue on Tuesday and sell $5 billion in 30-year Treasury Inflation Protected Securities on Thursday. US 2-year yields fell by 2 points near 2.857% and US 10-year yields fell by 1 point to 3.156%.

 

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