By Polya Lesova, MarketWatch
NEW YORK (MarketWatch) — Treasury prices declined on Tuesday after a gauge of German economic sentiment rose to its highest level since May 2010 and ahead of U.S. housing data due later in the session.
Boosting optimism about the global economy, the ZEW indicator of economic sentiment for Germany increased by 24.6 points in January to 31.5 points, according to data released on Tuesday. The rise was much bigger than economists had expected.
The positive German data reduced demand for safe-haven assets such as Treasurys.
Yields on benchmark 10-year notes 10_YEAR +1.68% rose 3 basis points to 1.875%. Yields and prices move in opposite directions.
Yields on 30-year bonds 30_YEAR +0.82% gained 3 basis points to 3.06%, and 5-year note yields 5_YEAR +2.61% added 2 basis points to 0.784%.
Investors are awaiting U.S. data that’s expected to show a rise in existing-home sales in December. On Wall Street, U.S. stock futures were little changed, as investors digested a raft of quarterly earnings reports. Read more in Indications.
Polya Lesova is MarketWatch's New York deputy bureau chief. Follow her on Twitter @PolyaLesova.
