21.12.2016 21:19:43

Treasuries Show Modest Move Back To The Upside

(RTTNews) - Following the pullback seen in the previous session, treasuries moved back to the upside during trading on Wednesday.

Bond prices moved higher on the day, although there was not much conviction behind the upward move. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.2 basis points to 2.546 percent.

The strength among treasuries came amid a decrease by the price of crude oil, with crude for February delivery sliding $0.81 to $52.49 a barrel.

Oil prices came under pressure following the release of a report from the Energy Information Administration showing an unexpected increase in crude oil inventories last week.

Bond traders seemed to shrug off upbeat housing data, as a report from the National Association of Realtors unexpectedly showed a continued increase in existing home sales in the month of November.

NAR said existing home sales climbed 0.7 percent to an annual rate of 5.61 million in November after surging up by 1.5 percent to a revised 5.57 million in October.

The continued increase came as a surprise to economists, who had expected existing home sales to dip to a rate of 5.54 million from the 5.60 million originally reported for the previous month.

With the unexpected increase, existing home sales rose to the highest annual rate since reaching 5.79 million in February of 2007.

Following several relatively quiet days on the U.S. economic front, a slew of data is scheduled to be released on Thursday.

Traders are likely to keep a close eye on reports on weekly jobless claims, durable goods orders, and personal income and spending.

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