Bonds Edge Higher Wednesday Amid Housing Data, Wednesday, May 16, 2007 3:50:02 PM
The fixed income market was little changed on Wednesday, as the release of ambiguous housing data left traders without a clear direction. Still, treasury bonds ticked slightly higher, ending a 3-day losing streak. The move also took the market off monthly low set on the previous day.Bonds jumped at the start of trading, as mixed housing statistics helped reverse part of the losses posted in the previous few days. A government report showed that new home construction unexpectedly picked up in April, but signs of future building were down sharply. The early advance was short-lived, however, and the market held steady for much of the rest of the day.
The 10-year yield slipped less than a basis point to finish at 4.708%, remaining above the 4.7% mark it closed above on Tuesday for the first time since mid-April.
The U.S. Commerce department revealed that housing starts, a measure of initial home construction, climbed 2.5% in April to a seasonally-adjusted annual rate of 1.528 million units. Economists had expected a decline during the month. However, building permits, a good gauge of future construction, dropped 8.9% during the month to reach its lowest annual rate in just under 10 years.
Copyright © 2007 RTTNews.com. All Rights Reserved.
posted by Kalin Tasev @ 1:20 PM
0 Comments:
Post a Comment
<< Home