Treasuries Fall on Stronger Data
U.S. Treasury issues ended Tuesday's session mostly lower in price. Profit taking after Friday's gains, along with strong housing starts data, kept the market on defensive ground. Weakness in the world equity markets drove Treasury prices higher early in the session, but the surprising strength in the housing starts data supports bullish economic forecasts. The data knocked Treasuries lower since the continued housing market strength cannot be fully explained by mild weather, suggesting that 2002 will be a great year for home builders.