Forex Marketz Daily Forex News – Fully Markets Update
Treasury yields continue to inch higher, as bond prices moved lower, during Wednesday’s North American trade session. The benchmark 10 year note hit a fresh multiyear high above 3.1 percent. This is the first time it has been this high since July 8, 2011.
The short term two year Treasury note yield also set a new multiyear high. It was at 2.593 percent. This was its highest yield level since August 11, 2008.
The 10-year Treasury yield was higher by the late afternoon. It just extended gains seen over the past two days. The rat is now up ten basis points since Monday morning.
The 10 year note is key because its role in helping set the rate for a number of business and consumer loans. This includes home mortgages.
The yield on the 30 year bond also ticked higher. It was at 3.22 percent.
Treasury Bonds React to U.S. Economic Data
The recent yield climb comes alongside a deluge of U.S. economic data crossing the wires this week.
On Wednesday, the Commerce Department reported that home building and permits came in lower for the month of April. They did revise the number in March. The Commerce Department cited a “persistent shortage in both land and skilled labor.”
Housing starts also fell. They were down 3.7 percent to an adjusted annual rate of 1.287 million units for the month of April. The print for March was revised higher. This number showed housing starts rising to a 1.336 million-unit rate instead of 1.319 million-unit rate.
Building permits also fell. They shed 1.8 percent to 1.352 million units. This was slightly better than the expected 1.35 million units.
Retail sales and factory data, released on Tuesday, were solid. They supported the 10 year yield. This was not good for the U.S. stock markets which fell as higher rates could undercut share valuations.
