CHICAGO (Dow Jones)–Hopeful signals from the housing market extended a selloff in interest rate futures markets Tuesday as investors found more reasons for rates to rise next year.
Eurodollar and Treasury futures prices fell after the National Association of Realtors reported that pending sales of previously owned homes climbed 3.6% in June, sparking optimism that a main factor in the global recession may be on the mend.
While more troubling data came in the form of a decline in U.S. personal income, and stocks were generally mixed, the housing number trumped it all, according to Mark Hawkinson, a Eurodollar floor broker for Newedge USA.
"The housing figure has been one of the last key ingredients in this global recovery that hasn’t been in there yet," Hawkinson said. "You’re starting to see some slivers of light on this whole global economic recovery."
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