Treasuries decline before housing data, Beige Book

Wednesday, 16. January 2019 14:24

While other market segments mostly showed little movement on Wednesday, benchmark sovereign bonds headed lower. United States Treasuries sold off, as did their equivalents issued by Germany and Britain. The repositioning, which translated to a substantial boost to yields, came in parallel to small gains in the dollar. Investors were waiting for next steps from the government of the United Kingdom following a historic defeat in the House of Commons over its arrangement with the European Union about the country's withdrawal.

Of note, the volume of mortgage loan applications surged last week in the US. The Department of Labor is due to release the export and import price figures for December. Data on housing sales and construction, oil inventories and the Federal Reserve's Beige Book are also on the slate.

The yield on the two-year US note advanced 1.2 basis points to 2.545% at 8:19 am ET. The five-year note yielded 2.549% or 1.5 points more for the day. The measure of 10-year maturity jumped two points to 2.738% after touching 2.748%, the highest level on a closing basis since December 27. The 30-year yield surged 2.6 points to 3.12%. Prices of corresponding futures were up by 0.02%, 0.06%, 0.12% and 0.37%, respectively.

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