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Old 01-23-2016, 01:15 AM
InstaForex Gertrude InstaForex Gertrude is offline
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Treasuries Give Back Ground Amid Global Stock Market Rally

Following the pullback seen in the previous session, treasuries saw some further downside during trading on Friday. Bond prices came under pressure in early trading but managed to regain some ground as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.9 basis points to 2.048 percent. With the increase on the day, the ten-year yield climbed further off the three-month closing low set on Wednesday. The continued weakness among treasuries came amid a pickup in risk appetite the helped drive a global stock markets rally. A notable increase by the price of crude oil also reduced the appeal of treasuries, with crude for March delivery jumping $2.66 to $32.19 a barrel. The price of crude added to the $1.18 a barrel increase seen in the previous session to climb back above the $30 a barrel level. On the U.S. economic front, the National Association of Realtors released a report showing that existing home sales rebounded strongly in December after seeing a steep drop in the previous month. NAR said existing home sales jumped 14.7 percent to an annual rate of 5.46 million in December from a rate of 4.76 million in November. Economists had expected sales to climb to a rate of 5.20 million. A separate report from the Conference Board showed a modest decrease by its index of leading economic indicators in December. The Federal Reserve's monetary policy announcement is likely to attract attention next week, although the central bank is widely expected to leave interest rates unchanged. Trading could also be impacted by reaction to reports on consumer confidence, new home sales, durable goods orders and pending home sales. Bond traders are also likely to keep an eye on the Treasury Department's auctions of two-year, five-year and seven-year notes. The Treasury is due to auction $26 billion worth of two-year notes next Tuesday, $35 billion worth of five-year notes next Wednesday and $29 billion worth of seven-year notes next Thursday.

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