MW: Treasurys fall as stocks get boost from earnings
By Deborah Levine, MarketWatch
NEW YORK (MarketWatch) — Treasury prices fell Wednesday, pushing yields up for the first day in four, as positive corporate news stimuated investors to move into stocks and away from the relative safety of U.S. bonds and the dollar.
Yields on 10-year notes UST10Y +0.51% , which move inversely to prices, rose 4 basis points to 3.40%. A basis point is 1/100th of a percent.
Two-year note yields UST2YR +2.45% added 1 basis point to 0.67%.
Thirty-year bond yields UST30Y +0.27% increased 2 basis points to 4.45%.
“Treasurys are lower after strong earnings from tech giants Intel INTC +6.37% and IBM IBM -0.24% have given a solid lift to global stock markets,” said strategists at RBS Securities.
Also boosting investors’ appetite for risk, Spain saw good demand at its debt auction, indicating some stability in the European sovereign-debt market. Read about Spanish auction, dollar.
As the only data of the day, the National Association of Realtors will release data on home sales for March at 10 a.m. Eastern time.
Also, the Federal Reserve will purchase inflation-indexed debt in the central bank’s last buyback of the week.
U.S. bonds rose earlier this week as worries about the outlook for some European countries’ debt trumped Standard & Poor’s move to revise lower its outlook on the U.S.’s AAA credit rating. Read more on S&P, U.S. rating.
