* U.S. pending home sales weigh on Treasuries
* Russia-Ukraine tensions cap bond yields
* U.S. 30-year bond yields rise after 4 days of losses
(Adds fresh quote, table, updates prices)
By Gertrude Chavez-Dreyfuss
NEW YORK, April 28 Prices on long-term U.S.
Treasuries fell on Monday with investors feeling comfortable
embracing riskier assets as upbeat U.S. housing numbers
strengthened the view that the world's largest economy was
But long Treasuries pared losses, with medium-term U.S. debt
prices turning positive, as the Nasdaq index fell. The ongoing
political tension between Russia and Ukraine has also kept a cap
on long bond yields.
Yields on U.S. 30-year bonds rose after four days of losses.
On Friday, long bond yields fell to their lowest in more than
nine months after Russia unexpectedly raised interest rates just
hours after the S&P downgraded the country's credit rating.
Benchmark U.S. 10-year yields also inched higher after three
days of losses.
U.S. pending home sales for March, which rose for the first
time in nine months, undermined Treasuries. The National
Association of Realtors said its Pending Home Sales Index, based
on contracts signed last month, was up 3.4 percent at 97.4. The
increase beat economists' expectations for a 1.0 percent
"With this report, housing may start catching up with the
other positive data we have been seeing," said Gennadiy
Goldberg, interest rate strategist at TD Securities in New York.
In afternoon trading, the benchmark 10-year U.S. Treasury
note was down 4/32 in price to yield 2.68 percent,
up from 2.66 percent late Friday. Prices of 30-year Treasury
bonds fell 14/32 to yield 3.46 percent, compared with 3.44
percent the previous session.
The five-year note, meanwhile, traded flat, with a yield of
"The market generally has had a good tone the past several
weeks. It's fairly healthy to see this occasional selloff,
because it does remind investors that there is some risk in
owning Treasuries," said Aaron Kohli, interest rate strategist
at BNP Paribas in New York.
But he added that Treasuries have positive momentum going
forward, especially because of geopolitical worries involving
The United States on Monday imposed sanctions against seven
Russian government officials and 17 companies linked to Russian
President Vladimir Putin in the latest U.S. action to punish
Moscow for its intervention in Ukraine.
The news did help Treasuries a little, but bids were
short-lived, and the market was back to where it was before the
new sanctions were announced.
"I think rates are having a hard time holding losses," BNP's
Kohli said. "The reason for that is partly bad positioning.
Others who got there early, loaded up on rates early in the year
and now there's some positioning clean-up that needs to be
Many market participants believe the uptrend for Treasuries
remained intact, and some did not expect a strong performance,
especially after the U.S. Federal Reserve started tapering its
BNP's Kohli said returns on U.S. Treasuries were 1.3 percent
so far this year.
(Editing by Peter Galloway)