US bond prices lower on home sales data

Prices fell and yields rose on US Treasury bonds on Thursday after new data showed that new homes sales in the US were up by 16.2 percent in April as prices fell 11 percent. The decline in home prices was an all-time record, while the gain in sales was the biggest in 14 years. The new figures made it less likely that the US Federal Reserve will cut interest rates this year.

Ten-year Treasury bonds were yielding 4.88 percent, up from 4.85 percent on Wednesday, and were as high as 4.9 percent at one point during the day. Thirty-year paper was at a yield of 5.03 percent, up from 5 percent late Wednesday afternoon. For a time thirty-year yields were up to 5.04 percent, their highest level since August 2006.

Story link: US bond prices lower on home sales data