* Gains strongest in 30-year bond
* Focus on weak consumer confidence
* Traders shrug off sunny housing price report
By Michael Connor
NEW YORK, Feb 25 U.S. Treasuries' prices rose on
Tuesday as traders focused on a drop in U.S. consumer confidence
and discounted stronger-than-expected data showing U.S. home
prices last year climbed the most since 2005.
Gains were biggest in 30-year Treasury bonds.
After falling on Monday, the issue was up 26/32 of a point
in price after release of The Conference Board's index of
consumer confidence, which showed a disappointing drop in
February. That left the 30-year yield at 3.666
percent, compared with 3.701 percent on Monday.
Benchmark 10-year U.S. Treasury notes also rose
and were up 11/32 in price to yield 2.710 percent, down from
2.745 percent on Monday.
Shorter maturities were mixed, with more modest gains or
small price declines.
The market's reaction to the drop in the confidence index
might be overdone, TD Securities strategist Gennadiy Goldberg
said in a commentary.
"The decline in the index was solely caused by a fall in the
expectations component of the survey...," Goldberg said. "We
look for the removal of debt ceiling uncertainty and a recovery
in equity prices to help support the expectations component of
the index in future months, with confidence continuing to show
Treasury prices rose in early New York trading and reacted
little to release of the S&P/Case-Schiller composite index of 20
metropolitan areas that showed a better-than-forecast 0.8
percent rise in single-family home prices during December from
The index also showed a 13.4 percent year-on-year rise,
which S&P Dow Jones Indices said was the best annual increase in