BLBG: Treasuries Are Little Changed After Paring Losses as U.S. Stocks Decline
U.S. two-year note yields traded near a record low as stocks fluctuated and data showed builders in the U.S. turned more pessimistic in July than forecast.
Treasuries earlier fell, with U.S. 10-year notes snapping a three-day rally as stocks rose. The National Association of Home Builders/Wells Fargo confidence index dropped to 14 this month, the lowest level since April 2009, data from the Washington- based group showed today. Readings lower than 50 mean more respondents said conditions were poor.
“The price action is dependent on what equities are doing,” said Christian Cooper, senior rates trader in New York at Jefferies & Co., one of the 18 primary dealers that trade with the Federal Reserve. “We’ve seen equities roll over.”
The two-year note yield increased less than 1 basis point, or 0.01 percentage point, to 0.59 percent at 10:51 a.m. in New York. It earlier dropped to 0.5765 percent, matching the record low set July 16, according to data compiled by Bloomberg. The 0.625 percent security due in June 2012 traded at 100 2/32.
----Editors: Greg Storey, Dave Liedtka
To contact the reporters on this story: Susanne Walker in New York at swalker33@bloomberg.net; Lukanyo Mnyanda in London at lmnyanda@bloomberg.net
