Treasuries Move Lower On Housing Starts Data

(RTTNews) - After tending the previous session roughly flat, treasuries showed a notable move to the downside during trading on Tuesday.

Bond prices moved lower in early trading and remained firmly in the red throughout the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose 4.3 basis points to 2.071 percent.

With the increase on the day, the ten-year yield climbed further off the five-month closing low set last Wednesday.

The drop by treasuries came following the release of a report from the Commerce Department showing that housing starts rose more than expected in September.

The report said housing starts climbed 6.5 percent to an annual rate of 1.206 million in September from the revised August estimate of 1.132 million. Economists had expected housing starts to rise to a rate of 1.147 million.

At the same time, the Commerce Department said building permits tumbled 5.0 percent to an annual rate of 1.103 million in September from 1.161 million in the previous month.

Trading activity on Wednesday may be somewhat subdued, as there are no major U.S. economic reports due to be released.