AIRLINK 74.28 Decreased By ▼ -0.88 (-1.17%)
BOP 5.38 Decreased By ▼ -0.07 (-1.28%)
CNERGY 4.34 Decreased By ▼ -0.05 (-1.14%)
DFML 29.02 Increased By ▲ 1.38 (4.99%)
DGKC 75.81 Increased By ▲ 3.81 (5.29%)
FCCL 20.45 Increased By ▲ 0.16 (0.79%)
FFBL 30.75 Decreased By ▼ -0.30 (-0.97%)
FFL 10.10 Increased By ▲ 0.13 (1.3%)
GGL 10.55 Increased By ▲ 0.28 (2.73%)
HBL 114.15 Decreased By ▼ -0.85 (-0.74%)
HUBC 130.99 Decreased By ▼ -0.46 (-0.35%)
HUMNL 6.69 Decreased By ▼ -0.18 (-2.62%)
KEL 4.06 Decreased By ▼ -0.14 (-3.33%)
KOSM 4.70 Decreased By ▼ -0.07 (-1.47%)
MLCF 38.83 Increased By ▲ 1.75 (4.72%)
OGDC 133.95 Decreased By ▼ -1.50 (-1.11%)
PAEL 24.07 Increased By ▲ 0.67 (2.86%)
PIAA 27.70 Increased By ▲ 0.39 (1.43%)
PIBTL 6.64 Increased By ▲ 0.04 (0.61%)
PPL 113.30 Increased By ▲ 0.14 (0.12%)
PRL 28.61 Decreased By ▼ -0.14 (-0.49%)
PTC 15.17 Decreased By ▼ -0.33 (-2.13%)
SEARL 57.01 Decreased By ▼ -0.32 (-0.56%)
SNGP 66.25 Decreased By ▼ -0.74 (-1.1%)
SSGC 11.10 Decreased By ▼ -0.07 (-0.63%)
TELE 9.07 Decreased By ▼ -0.07 (-0.77%)
TPLP 11.95 Decreased By ▼ -0.10 (-0.83%)
TRG 69.90 Decreased By ▼ -0.49 (-0.7%)
UNITY 23.70 Increased By ▲ 0.05 (0.21%)
WTL 1.34 No Change ▼ 0.00 (0%)
BR100 7,439 Decreased By -15.5 (-0.21%)
BR30 24,224 Decreased By -25.9 (-0.11%)
KSE100 71,382 Decreased By -51.7 (-0.07%)
KSE30 23,548 Decreased By -18.8 (-0.08%)

imageNEW YORK: US Treasury yields fell on Wednesday after data showed that US retail sales were unchanged in April as households cut back on purchases of automobiles and other big-ticket items.

The data suggested the economy was struggling to make a strong rebound after barely growing in the first quarter.

Bonds had also opened stronger before the data after Germany and Italy both successfully sold government debt, and yields on the secondary market fell. A dramatic selloff in German Bunds has helped drag Treasury yields higher in recent weeks.

"The market has swung too far, first to the low yield, pulled down by Europe, and then too high on the unwinding of that trade," said Robert Tipp, chief investment strategist at Prudential Fixed Income in New Jersey.

Treasury yields had risen as investors adjust for the possibility that the Federal Reserve will raise interest rates later this year.

Tepid data, including Wednesday's retail sales, however, has raised some doubts that the Fed will hike unless growth accelerates.

"Despite the fact that we're presumably coming up on a Fed rate hike, the underlying data wouldn't appear to be exactly something the Fed would want to slow down," said Tipp.

The stronger market tone may help the Treasury sell $24 billion in 10-year notes on Wednesday, the second sale of $64 billion in new supply this week.

A $24 billion auction of three-year notes on Tuesday saw solid demand. The government will also sell $16 billion in 30-year bonds on Thursday.

Benchmark 10-year notes were last up 11/32 in price to yield 2.22 percent, down from 2.26 percent late on Tuesday.

Copyright Reuters, 2015

Comments

Comments are closed.