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 LeadersCalendar 

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
03:46p PHILIPPINE STOCK EXCHANGE : Index to move sideways
03:46p UNIVERSAL ROBINA : URC posts net income of P4.8 B
03:45p SHANGHAI SHENHUA : Obafemi Martins moves to China
03:37p RE/MAX : Apartments sold and rented
03:37p AURA INVESTMENTS : awarded Ramat Aviv Gimmel urban renewal project
03:36p TEVA PHARMACEUTICAL : BRIEF: Teva CEO Vigodman's 2015 salary cost: $5.7m
03:35p CORNERSTONE TOTAL RETURN FUND : February 12, 2016 - Monthly Distributions
03:35pDJANGLO AMERICAN : Correction to 'Anglo American Chief's Woes Set to Deepen'
03:30p GREENPEACE : Colombia bans coal mining in the páramos!
03:28p COMSCORE : Announces Official Worldwide Box Office Results for Weekend of February 14, 2016
Latest news
Advertisement
Hot News 
AVENIR TELECOM : CSU textiles, design museum opens four exhibits to mark major expansion
VENTURE LIFE : In GBP3.7 Million Fundraising To Buy Mouthwash Maker (ALLISS)
DEUTSCHE POSTBANK : self-service solutions put control in customers' hands
LONDON & ASSOCIATED PROPERTIES : AND ASSOCIATED PROPERTIES PLC - Director/PDMR Shareholding
Paragon Offshore to File for Bankruptcy
Most Read News
10:42a BRIEF : KOICA announces JD5.2m grant to build new premises for Marka school
02/13 At 100, Bandelier National Monument faces a challenges, but still holds secrets
11:20a APPEA AUSTRALIAN PETROLEUM PRODUCTION & EXPLORAT : Moratorium threatens NT gas investment
10:40a EPAZZ : How Intranet Can be Useful for HR Managers
02/13 COLBY COLLEGE : Women’s hockey falls in another tight game
Most recommended articles
03:35pDJANGLO AMERICAN : Correction to 'Anglo American Chief's Woes Set to Deepen'
03:25pDJContact Energy Reports Net Loss in First Half of FY16
02:44pDJOUTLOOK FOR MARKETS : More Volatility as Debate Over Economy Heats Up
02:40pDJNationalism Wreaks Havoc in Divided Europe
02:40pDJIran Launches First Oil Shipments to Europe in Three Years