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

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
12:35p KANSAS CITY SOUTHERN : Announces Updated Full-Year 2015 Guidance
12:34p CATERPILLAR : "Hydraulic System Having Dual Tilt Blade Control" in Patent Application Approval Process
12:34p OLYMPUS : Researchers Submit Patent Application, "Endoscope Fogging Prevention Unit and Endoscope", for Approval
12:33p WAL MART STORES : Why businesses are speaking out on religious-objections laws
12:33p SAMSUNG ELECTRONICS : Patent Issued for Electronic Chalkboard System, Control Method Thereof, and Pointing Device
12:33p INTERACTIVE BROKERS : Reports Brokerage Metrics for March 2015, includes Reg.-NMS Execution Statistics
12:33p SUPERVALU : Cub Foods Bringing Caroline’s Carts to All Locations
12:33p ITA TRADE ADMINISTRATION : Commerce Under Secretary Selig Addresses Administration Policy Change on U.S. Relations with Cuba
12:33p NOVAE : Annual Financial Report
12:33p NEW YORK FARM BUREAU : April 1, 2015 - NYFB Statement on the 2015-2016 NYS Budget
Latest news
Advertisement
Hot News 
CEB RESOURCES : Sale of Interest in Balamara Resources Limited
FINANCIER CROI INV : Dissertation research ; Letters
EveryWare Global, Inc. Reaches Restructuring Agreement to Create Strengthened Balance Sheet and Sustainable Capital Structure
HYDRODEC : To Acquire Eco-Oil International For GBP2.4 Million
EVOCUTIS : First Half Loss Narrows, Seeking Further Investments
Most Read News
03/31 Wall St. drops but S&P, Nasdaq register quarterly gains
03/31 DEUTSCHE LUFTHANSA : Nick Clegg: don’t let Andreas Lubitz distort views about mental illness
03/31 SHANTA GOLD : New Loan Facilities
03/31 FOREMOST INCOME FUND : Reports 2014 Results
03/31 NEW FLYER : Winnipeg Bargaining Unit Collective Bargaining Agreement Extension
Most recommended articles
12:31p Euro zone, Athens closer to Greek reform list, more work needed - euro zone official
12:30p Greece sets sights on deal, denies to delay IMF payment
12:28pDJArkansas Governor Calls for Changes to Religious-Freedom Bill--Update
12:21pDJOil Prices Gain on Slight Production Drop
12:19pDJEuropean Stocks Climb on Signs Eurozone Economy Picking Up -- 3rd ndUpdate
Dynamic quotes  
ON
| OFF