By Ben Eisen, MarketWatch NEW YORK (MarketWatch) — Treasury prices fell Tuesday after data showed home-prices inched up in October, putting the benchmark yield on track for a yearly rise of over a full percentage point. The Case-Shiller home-prices index rose 0.2% in October and 13.6% in the past 12 months, the largest yearly gain since February 2006. Nonetheless, the report was cautious about the pace of price increases in 2014. The benchmark 10-year note 10_YEAR +0.77% yield, which rises as prices fall, was up 2.5 basis points at 2.998%, as it continued to crisscross the 3% threshold that is emblematic of the rising rate environment. The benchmark note is on track to close out the year roughly 123 basis points higher, the quarter 38 basis points higher, and the month 25 basis points higher, according to FactSet. The 30-year bond 30_YEAR +0.10% yield rose 1 basis point to 3.913%. The 5-year note 5_YEAR +1.35% yield rose 3 basis points to 1.740%. A survey on business conditions in the Chicago area is expected to be released at 9:45 a.m. Eastern, and the Conference Board’s consumer confidence index will be out at 10 a.m. Eastern. Improving data in recent months prompted the Federal Reserve to announce earlier in December that it would begin tapering its $85 billion in monthly bond-buying stimulus. The central bank said it would keep its key policy rate low until the unemployment rate fell well below 6.5%. “Investors have already ‘priced in’ both the Fed’s taper announcement and the economy’s improved economic growth. This has helped temper the recent rise in interest rates,� said William Riegel and Lisa Black, of TIAA-CREF, in a Monday note. More from MarketWatch: 5 things you don’t know about champagne. Stimulus withdrawal could hit U.S.and China. Insurers scramble to complete Obamacare enrollments Ben Eisen is a MarketWatch reporter based in New York.

Source