MW: Treasurys, dollar down after housing starts, PPI
By Deborah Levine
NEW YORK (MarketWatch) -- The dollar extended losses and Treasury prices remained under modest pressure on Tuesday after a report showed U.S. housing starts rose 1.7% to a 546,000 pace in July. A separate report said producer prices rose 0.2% last month. Yields on 10-year notes (UST10Y 2.60, +0.03, +0.97%) , which move inversely to prices, rose 4 basis points to 2.60%, after touching the lowest since March 2009 on Monday. The dollar index (DXY 82.17, -0.37, -0.45%) , a measure of the greenback against a basket of major currencies, slipped to 82.164, from 82.258 before the data and compared with 82.535 late Monday. The euro (EURUSD 1.2884, +0.0065, +0.5069%) rose to $1.2888, from $1.2869 earlier, up from $1.2813 Monday. Still to come is data on industrial production and the Federal Reserve's first buyback of Treasurys as it recycles cash from maturing mortgage debt back into the bond market.
