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19 May 2015
US treasury yields rise after housing starts data
FXStreet (Mumbai) - The yields on the short duration and long duration treasuries in the US shot higher after the commerce department data released today in the Us showed housing starts and building permits rose to a multi-year highs in April.
The yield on the benchmark 10-year treasury note now trades 6.8 basis points higher at 2.296%. It clocked an intraday high of 2.303. The yield on the 30-year debt also shot higher to 3.092%. Meanwhile, at the short-end of the curve, the two-year yield rose to a high of 0.613%.
The treasury prices fell, thereby pushing yields higher as official data showed Housing starts jumped 20.2% to a 1.14 million annualized rate, the most since November 2007, while Building permits Permits rose to a 1.14 million annualized rate, its highest since June 2008.
The data comes a day ahead of the release of the Fed April meeting minutes. Ahead in the week, the Friday’s US CPI data would also influence the treasuries.
Earlier today, the yields had declined, tracking the sharp losses in the bond yields across the Eurozone after the ECB member speech text indicated the bank would “accelerate” QE purchases in May and June due to seasonal reasons.
The yield on the benchmark 10-year treasury note now trades 6.8 basis points higher at 2.296%. It clocked an intraday high of 2.303. The yield on the 30-year debt also shot higher to 3.092%. Meanwhile, at the short-end of the curve, the two-year yield rose to a high of 0.613%.
The treasury prices fell, thereby pushing yields higher as official data showed Housing starts jumped 20.2% to a 1.14 million annualized rate, the most since November 2007, while Building permits Permits rose to a 1.14 million annualized rate, its highest since June 2008.
The data comes a day ahead of the release of the Fed April meeting minutes. Ahead in the week, the Friday’s US CPI data would also influence the treasuries.
Earlier today, the yields had declined, tracking the sharp losses in the bond yields across the Eurozone after the ECB member speech text indicated the bank would “accelerate” QE purchases in May and June due to seasonal reasons.