MW: Treasurys decline as markets calm; stocks head up
By Deborah Levine, MarketWatch
NEW YORK (MarketWatch) -- Treasury prices fell on Wednesday, pushing yields up from near 13-month lows, as a break from bad international news gave investors enough comfort to move some assets away from the relative safe haven of U.S. debt.
Yields on 10-year notes (UST10Y 3.23, +0.07, +2.34%) , which move inversely to prices, rose 8 basis points to 3.24%. Yields hit 3.06% Tuesday, the lowest level since April 2009.
A basis point is 0.01%.
Yields on 2-year notes (UST2YR 0.83, +0.07, +8.70%) increased 2 basis points to 0.81%.
"The panic has exhausted itself for now, the approach of 3% in 10-year notes surely is worth some stall or at least an inhibition," said strategists at CRT Capital Group.
U.S. stock futures pointed to a higher opening on Wall Street, with futures for the Dow Jones Industrial Average recently up 71 points to 10,096.
Treasurys stayed lower after a report said orders for durable goods in April rose 2.9%. Read about durable goods.
That helped the dollar recover some small losses, especially versus the euro, which turned lower after gaining in the European and Asian trading sessions.
The dollar index (DXY 86.84, +0.06, +0.07%) , which tracks the U.S. unit against a basket of six major currencies, slipped to 86.650, down slightly from 86.670 before the data and from 86.799 in late North American trading on Tuesday.
Still to come are data on new-home sales and the government's auction of 5-year notes (UST5YR 2.05, +0.07, +3.60%) .
"With the market likely in a correction mode, the auction will be a tough one to handicap," said RBS Securities' strategist John Richards. "The sector is expensive both absolutely and relatively."
