Member access

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

BOND REPORT: Treasurys Prices Rise After Housing Data

01/22/2013 | 05:14pm US/Eastern
Recommend:
0

By Wallace Witkowski and Polya Lesova, MarketWatch

SAN FRANCISCO (MarketWatch) -- Treasury prices rose Tuesday, reversing earlier losses, following data that showed sales of existing homes declining in December.

Yields on benchmark 10-year notes (10_YEAR) fell less than 1 basis point to 1.85%, after being up more than 3 basis points at 1.88% earlier in the session.

Yields move inversely to prices. A basis point is one one-hundredth of a percentage point.

Treasury prices started bouncing back after National Association of Realtors data showed a 1% decline in existing-home sales for the final month of 2012.

Earlier, prices were lower after the Bank of Japan said it would adopt a target of 2% inflation and kick off a program of open-ended asset purchases.

While Treasurys were initially weaker on the Bank of Japan's aggressive stance, the housing report turned that momentum around, indicating a tightening housing inventory, said Anthony Valeri, fixed-income strategist at LPL Financial. "They might rally further on that," said Valeri.

Yields on 30-year bonds (30_YEAR) fell less than 1 basis point to 3.03%, after being up as many as 4 basis points earlier in the session.

Adding momentum to the home-sales data was the Federal Reserve's purchase of $1.39 billion in Treasury Inflation Protected Securities, or TIPS, particularly the $1.24 billion in 30-year TIPS purchases, according to Michael Pond, head of global inflation-linked research at Barclays.

Markets were also disappointed in the BOJ plan to wait until 2014 to start asset purchases rather than this year, Pond said.

Criticizing quantitative-easing efforts closer to home, Pimco's Bill Gross said on Twitter that zero-coupon bonds are "future road kill" because of the Fed's current bond buyback rate.

Yields on 5-year notes (5_YEAR) were down less than 1 basis point at 0.76%. Yields on 7-year notes (7_YEAR) were down 1 basis point to 1.24%.

Earlier, yields had gotten a boost after the ZEW indicator, a gauge of economic sentiment for Germany, increased by a surprising 24.6 points in January to stand at 31.5 points. The rise was much bigger than economists had expected.

The positive German data reduced demand for safe-haven assets such as Treasurys.

On Wall Street, U.S. stocks traded higher following a long holiday weekend, as investors digested a raft of quarterly earnings reports. The Dow Jones Industrial Average (DJI) gained 0.5% and the S&P 500 Index (SPX) rose 0.4%, while the Nasdaq Composite Index (RIXF) closed up 0.3%.

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Recommend :
0
React to this article
Latest news
Date Title
2m ago CARLSBERG A/S : Financial statement as of 30 June 2014
5m agoDJPRESS RELEASE : The Conference Board Leading Economic Index(R) for India Fell Slightly in July
6m ago FOOD RECALL WARNING : Belleisle Farms Brand Cole Slaw Recalled Due to Listeria Monocytogenes
7m ago Tile Shop Hldgs Inc. (TTS) is on Top of Small-Cap Stars Financials Heap Early on August 19
7m ago Aeropostale Inc. (ARO) Leads Small-Cap Stars in Early Trading for August 19
7m ago Leading Small-Cap Stars Health Care Stock for August 19 Morning Session is Horizon Pharma Inc. (HZNP)
7m ago Black Diamond Inc (BDE) Leader of Small-Cap Stars Consumer Goods Sector After Morning Trading for August 19
7m ago Goodrich Petroleum Corp. (GDP) is Top Materials Small-Cap Star for August 19 Morning Session
7m ago Poly Shield Techs (SHPR) is Showing Biggest Gains of Small-Cap Stars Tech Sector on August 19
11m ago MacAulay-Brown, Inc. Appoints Industry Veteran to Lead Business Development for its National Security Group
Latest news
Advertisement
Hot News 
Aeropostale Inc. (ARO) Leads Small-Cap Stars in Early Trading for August 19
HOME DEPOT : Business Highlights
LIQUOR STORES N A : Declares August Cash Dividend
EXCLUSIVE : Amid investor pressure, PetSmart says to explore sale
ZHAOPIN : Reports Fourth Quarter and Fiscal Year 2014 Financial Results
Most Read News
1d ago EXCLUSIVE : Amid investor pressure, PetSmart says to explore sale
1d ago EATON : Helps Achieve Code Compliance with Safe and Compact Circuit Protection Products Tailored for Construction Applications
1d ago CANADA'S COUCHE-TARD MAKES SHORT-LIST IN $16 BILLION SINOPEC UNIT SALE : sources
1d ago CITIGROUP : considers sale of Japan retail unit
1d ago Standard Chartered to pay $300 million for oversight shortfalls
Most recommended articles
5m agoDJPRESS RELEASE : The Conference Board Leading Economic Index(R) for India Fell Slightly in July
36m ago Gold Selloff Continues, US Dollar Rally Regains Momentum
40m ago U.S. auto safety agency unveils new recall search tool
46m ago NHTSA unveils new recall search tool
1d agoDJAsian Shares Mostly Flat -- Update
Dynamic quotes  
ON
| OFF