By Ben Eisen, MarketWatch
NEW YORK (MarketWatch) — Treasury prices rose on Tuesday after data showed U.S. consumer confidence fell more than expected in July and as investors awaited the Federal Reserve’s monetary-policy meeting.
The 10-year note 10_YEAR -1.11% yield, which moves inversely to price, fell 3 basis points on the day to 2.579%.
The 30-year bond 30_YEAR -0.82% yield fell 3.5 basis points to 3.643% and the 5-year note 5_YEAR -1.86% yield fell 1.5 basis points to 1.369%.
Treasurys added to gains after the Conference Board’s consumer confidence index dropped to 80.3% in July from 82.1% in June.
Prices also held gains after the S&P/Case-Shiller 20-city composite home-price index showed a monthly gain of 2.4% in May and a year-over-year rise of 12.2%. The data dates back to May, before a rise in interest rates may have dampened demand, but it nonetheless underscores recovery in the housing market.
“After a strong rebound in housing off of depression lows, coupled with a measurable back up in mortgage rates, the pace of improvement is destined to slow though remain an important component to growth going forward,” said Adrian Miller, director of fixed-income strategy at GMP Securities, in a note.
But investors are focused on a trio of events later in the week that could further clarify the Federal Reserve’s easy-money policies. The central bank has said it could scale back the pace of its bond-purchase program later this year if data continue to show economic improvement.
The release of the Fed’s policy statement on Wednesday after its regular meeting this week may refine the message. Investors will also digest a GDP report on Wednesday and a nonfarm payrolls report on Friday.
After last month’s nonfarm payrolls report, Treasury yields spiked to their highest levels since 2011, underscoring the volatility that has surrounded data releases.
Also on Wednesday, the Treasury Department will release its quarterly refunding announcement. On Monday, the Treasury said it expects to borrow $209 billion between July and September.
U.S. stocks opened higher.
Ben Eisen is a MarketWatch reporter based in New York.
