TREASURIES-Prices retreat as stocks rebound damps safety bid
* Safety bid for bonds unwinds as stocks rise * Gold recovers after 8 percent plunge on Monday * Slide in commodities, stocks, Boston attack fed safety bid Monday By Ellen Freilich NEW YORK, April 16 (Reuters) - Prices for U.S. Treasuries fell on Tuesday as rebounds in stocks and gold erased gains that bonds scored the previous day when a plunge in gold prices, weaker stocks and a bombing at the Boston Marathon fed a safe-haven bid for U.S. debt. After rising a point in the previous day's session, 30-year bonds fell a point on Tuesday, their yields rising to 2.92 percent from 2.87 percent late on Monday. Benchmark U.S. 10-year notes fell 10/32 in price, their yields rising from 2013 yield lows to 1.73 percent on Tuesday from 1.69 percent late on Monday. "Investors got sticker shock when yields went below 1.70 percent," said Chris Rupkey, managing director and chief financial economist at Bank of Tokyo-Mitsubishi UFJ in New York. "The stock market bounced back today, taking away the urgency to hide in the safety of fixed income investments." Major stock indexes were up on Tuesday, though not by as much as they fell the previous day. Gold rose more than 3 percent after a record-breaking one-day drop on Monday. Momentum "continues to be mixed near overbought levels," said William O'Donnell, head of U.S. Treasury strategy at RBS Securities in Stamford, Connecticut. He cited support for 10-year Treasuries "around (the) 1.83 percent (yield level)." News that the U.S. Consumer Price Index declined more than forecast while the core CPI rose less than forecast was bullish for bonds, but evoked little discernible market reaction. A 7 percent rise in U.S. housing starts in March to their highest level since 2008 looked bearish for bonds at first glance, but was neutralized by a 4.8 percent drop in starts for single-family units. Federal Reserve data showing industrial production rose 0.4 percent in March, topping the 0.2 percent forecast, incrementally widened the bond market's losses. The data's impact on bonds was limited because the rise in output was due to a cold weather-related jump in utility use. A raft of Fed speakers appeared to have little overt market impact. New York Fed President William Dudley said the weak March jobs report underscored "the need to wait and see how the economy develops before declaring victory prematurely." Chicago Fed President Charles Evans appeared to echo that sentiment, telling the Union League Club in Chicago that the time for pulling back on the Fed's accommodative monetary policy is still "years down the road." Fed Vice Chair Janet Yellen will moderate a monetary policy panel this afternoon. "With no inflation, the Fed is free to pursue its full employment mandate to fullest," Rupkey said The Fed has not scheduled purchases of Treasuries today.
- Washington, DC city council raises minimum wage to $11.50/hr in 2016
- India trims perks for U.S. staff in row over New York envoy arrest
- China confirms near miss with U.S. ship in South China Sea
- Mega Millions lottery winning tickets sold in California, Georgia |
- UPDATE 5-Mega Millions lottery winning tickets sold in California, Georgia -Officials