Treasury Prices Rising
MARKETSCOPE : Treasury bond prices rallied on Wednesday, after economic reports showed that consumer prices gained in October at their slowest pace in four months.
The 10-year Treasury notes rose 16/32 to 100-09/32 for yield of 4.49%. The October Consumer Price Index headline and core rate rose 0.2%, compared to 2.5% in September.
A sharp drop in the National Association of Home Builders index in November and MBA mortgage surveys suggested that the Federal Reserve's tightening of credit in recent years has had some impact on the housing sector. The Fed has raised lending rates 12 times since 2004.
The Senate Banking Committee reportedly voted to approve Ben Bernanke as Federal Reserve chairman. He has been nominated to replace Alan Greenspan.