Bond yields tick upward ahead of big housing data release

Bond yields ticked slightly upward Tuesday as markets looked ahead to new data on housing, manufacturing and retail sales.

The yield on the benchmark 10-year Treasury note was up roughly one basis point at 2.805%, and the yield on the 30-year Treasury bond was up a basis point to 3.107%. The yield on the shorter-term 2-year Treasury note was also up roughly one basis point at 3.215%.

Yields move inversely to prices, and a basis point is equal to 0.01%.

Data on housing starts, mortgage applications and building permits will be released this week, which investors will be watching closely as a key insight into the construction industry’s reaction to a demand slowdown that’s been reported since June.

Permits in particular will indicate the direction of the housing market for the rest of the year, analysts say.

Data last week showed a slight slowdown in the blistering climb in U.S. consumer goods prices, which saw an 8.5% year over year rise in July — slightly less than expected due to a decrease in oil prices. Markets seem to think this may mean a slowdown in the Fed’s tightening cycle, though the Fed has not indicated this yet.

Four-week and eight-week treasury auctions are due Tuesday.


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