MW: Treasurys advance ahead of $107 billion in debt sales
10-year yield falls to 2.60%
By Ben Eisen, MarketWatch
NEW YORK (MarketWatch) — Treasury prices climbed Monday ahead of data on manufacturing and existing home sales, plus a week of bond sales, as bond investors prepared for a week filled with economic news and debt sales.
The benchmark 10-year note 10_YEAR -0.27% yield, which falls as prices rise, was down 3 basis points at 2.595%. The 30-year note 30_YEAR -0.47% yield fell 3 basis points at 3.420% and the 5-year note 5_YEAR -0.12% yield fell 2 basis points to 1.680%.
Last week, Fed Chairwoman Janet Yellen reaffirmed the Federal Reserve’s commitment to low interest rates, despite signs of improving economic data. She called a recent rise in inflation readings “noisy,” leading to some questions among bond investors about whether the central bank is falling behind the curve . That has honed investor attention on economic data to see whether numbers continue to show an improving trend.
On the docket Monday is a Markit flash PMI manufacturing index for June at 9:45 a.m. Eastern, and existing home sales for May at 10 a.m.
National economic activity jumped in May, according to a Chicago Fed index on Monday. The index rose to 0.21 last month from negative 0.15 in April, indicating expansion of trend growth.
Later in the week is a GDP revision for the first quarter on Wednesday, and a reading of the Fed’s favored inflation metric, personal consumption expenditures, on Thursday.
The Treasury Department will also sell $107 billion of fixed- and floating-rate Treasury securities this week.
