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BP Abandons Latest Attempt to Stop Oil Leak
06/01/2010
BP has abandoned its latest attempt to stop the Gulf of Mexico leak; the stock is down 17% in London trading and bonds are in line with those of companies rated as much as 5 levels below them; the spill has already cost around $1B. Commodities and stocks are lower; Treasuries and mortgages are up. Right now, the futures market is pricing in a 72% chance that the Fed keeps rates at .25% through September 21st, 2010. Currently, the Ten Year yield is at 3.287% (3.32% on Friday) and the 2-10 yield spread is at 249bps, steepening 1bp since Friday morning.
