Treasury Prices Fall
MARKETSCOPE : Treasury prices fell Tuesday, as investors unwound long positions in bonds supported recently by a flight to safety.
The 30-year bond fell 10/32 to 90-17/32 for a yield of 5.13%.
Speculation continued about the fighting in the Middle East. Rumors circulated early of steps being taken toward calming the violence. The news had sparked a flight to safety rally last week.
U.S. Existing Home Sales fell 1.3% to a 6.620 million unit pace in June from 6.710 million in May, which was revised from 6.670 million.
The Conference Board reported that U.S. Consumer Confidence rose to 106.5 in July from 105.4 in June, revised from 105.7.
Although July confidence and the assessment of the labor market improved slightly in July, the readings on both of these were in line with their second-quarter averages, said John Ryding of Bear Stearns in New York. He still expects higher gas prices and the geopolitical situation in the Middle East to weigh on confidence in August.