Log in
Login
Password
Remember
Lost password
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

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

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

React to this article
Latest news
Date Title
10:46a TRUVEN HEALTH ANALYTICS : -NPR Health Poll Finds Majority of Women Believe They Should Have an Annual Mammogram
10:45a DEPARTMENT OF ENERGY REPUBLIC OF SOUTH AFRICA : Media Statement: Adjustment of Fuel Prices effective from 02 September 2015
10:45a SINO I TECHNOLOGY : Terms of Reference for Audit C...
10:45a MINISTRY OF FOREIGN AFFAIRS OF REPUBLIC OF EST : Welcome Statement by the Foreign Minister Marina Kaljurand to the members of the Institute of the International Law
10:44a MILLAT TRACTORS : Board meeting of Millat Tractors Limited will be held on September 04, 2015
10:44a SUMMIT BANK : Board meeting of Sumit Bank Limited postponed
10:44a UNITED BANK : Transaction of 6,000 shares of United Bank Limited
10:44a SHABBIR TILES & CERAMICS : and Ceramics Limited has a new company Secretary
10:44a OTSUKA : Board meeting of Otsuka Pakistan Limited will be held on September 08, 2015
10:44a KASB SECURITIES : Board meeting of KASB Securities Limited
Latest news
Advertisement
Hot News 
OPPORTUNITY INVEST MGMT : 28 augustus 2015 - PRESS RELEASE: Announcement OIM 28 August 2015
MOLYCORP : Massive Mojave mine Molycorp to close, taking nearly 500 jobs
BIG LOTS : Announces Quarterly Dividend On Common Stock
SMITH & WESSON : Arflin sentenced to 40 years for murder, felony solicitation
MAVEN INCOME & GROWTH VCT : 4 Net Asset Value Total Return Rises
Most Read News
05:05a DEFRA UK DEPARTMENT FOR ENVIRONMENT FOOD AN : New proposals to protect livestock from bovine TB
08/27 IOWA ENERGY CENTER : Energy Department Announces $10 Million in Funding Opportunities
08/27 SHAREHOLDER ALERT : Brower Piven Encourages Investors Who Have Losses in Excess of $100,000 From Investment in AAC Holdings, Inc. to Contact Brower Piven Before the Lead Plaintiff Deadline in Class Action Lawsuit – AAC
08/27 Photo Release -- Eckrich and Operation Homefront Honor Military Family
08/27 UNITED COMPANY RUSAL PLC : Cancellation of the Corporate Ruble Bonds
Most recommended articles
10:44aDJU.S. Treasury Yields Fall For Second Consecutive Session
10:42aDJConsumer Sentiment Reading Slips in August
10:40a Payments glitch at HSBC leaves thousands of Britons without wages
10:39a Investors still in the dark as cyber threat grows
10:38a CEO of Ashley Madison parent company steps down