TREASURIES-Losses widen after U.S. retail sales, PPI data

Tue Jul 14, 2009 8:46am EDT
 
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NEW YORK, July 14 (Reuters) - U.S. Treasuries widened losses on Monday after the government released reports on June U.S. retail sales and producer prices.

June producer prices rose 1.8 percent, double economists' consensus forecast. The bond market abhors inflation because it erodes the value of fixed-income investments.

Benchmark 10-year Treasury notes US10YT=RR, down 18/32 before the reports, were down 24/32 afterward, their yields at 3.44 percent, up from 3.35 percent late on Monday.

U.S. retail sales rose a stronger-than-expected 0.6 percent in June. However, excluding both autos and gasoline, sales were down 0.2 percent, the fourth consecutive monthly decline.

Thirty-year Treasury US30YT=RR bonds, down 1-4/32 before the releases, were down 1-10/32 after the reports, their yields at 4.31 percent, up from 4.23 percent late on Monday. (Editing by Theodore d'Afflisio)

 

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