Treasury yields drop on successful auction, home sales

US Treasury bond prices were up again on Thursday after demand for an auction of 5-year paper showed that foreign investors are still interested in buying US debt and on a report that the sale of new homes dropped 8.3 percent in August.

The housing news encouraged the sentiment that the Federal Reserve will cut interest rates again in October.

Two-year Treasury bonds saw yields drop to 3.96 percent from 3.99 percent on Wednesday afternoon, while five-year issues were yielding 4.22 percent, ten-year paper yielded 4.57 percent and thirty-year bonds fell from Wednesday’s yield of 4.89 percent to a yield of 4.84 percent late Thursday.

Story link: Treasury yields drop on successful auction, home sales