HomeUSABond yields rise following big data releases

Bond yields rise following big data releases

Bond yields rose slightly on Tuesday amid the release of fresh housing data.

The yield on the benchmark 10-year Treasury note was up 4 basis points to 2.835%, and the yield on the 30-year Treasury bond traded more than 2 basis points higher at 3.122%. The yield on the shorter-term 2-year Treasury note was also up roughly 3 basis points at 3.232%.

Yields move inversely to prices, and a basis point is equal to 0.01%.

The data released Tuesday showed a 9.6% decline in housing starts from June, well above the expected 2.5% drop as anticipated by economists surveyed by Dow Jones. Building permits slipped 1.3% but beat estimates.

Investors have closely watched the data for further clues into the state of the housing market industry and insight into the construction industry’s reaction to a demand slowdown that’s been reported since June.

At the same time, industrial production data showed a 0.6% rise in July, compared to estimates of 0.3%.

Data last week showed a slight slowdown in the blistering climb in U.S. consumer goods prices, which saw an 8.5% year over year rise in July — slightly less than expected due to a decrease in oil prices. Markets seem to think this may mean a slowdown in the Fed’s tightening cycle, though the Fed has not indicated this yet.



Please enter your comment!
Please enter your name here

New Updates