NEW YORK — Treasury bond prices fell steeply Wednesday, after the government
reported stronger-than-expected new-home sales in November.
At 5 p.m. EST, the 10-year Treasury note was down 13/32. Its yield, which moves
in the opposite direction, rose to 4.65 percent from 4.60 percent.
The 30-year bond was off 22/32. Its yield rose to 4.78 percent from 4.73 percent.
The 2-year note was lower by 3/32, yielding 4.78 percent, up from 4.72 percent.
Yields on 3-month Treasury bills were 4.98 percent. The discount rate slipped
to 4.86 percent from 4.87 percent.
Mike Larson, a real estate analyst with Weiss Research in Jupiter, Fla., said
bonds have of late been priced for a weak economy, led in part by the housing
market. With Wednesday’s fairly strong new-home sales report, those assumptions
are being put into question, sending rates higher.
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