ANL 34.00 Decreased By ▼ -0.52 (-1.51%)
ASC 14.97 Decreased By ▼ -0.19 (-1.25%)
ASL 24.35 Decreased By ▼ -0.48 (-1.93%)
AVN 93.65 Decreased By ▼ -1.35 (-1.42%)
BOP 7.91 Increased By ▲ 0.04 (0.51%)
BYCO 10.05 Decreased By ▼ -0.26 (-2.52%)
DGKC 126.00 Decreased By ▼ -0.60 (-0.47%)
EPCL 56.61 Decreased By ▼ -0.55 (-0.96%)
FCCL 24.40 Decreased By ▼ -0.10 (-0.41%)
FFBL 27.82 Decreased By ▼ -0.14 (-0.5%)
FFL 16.49 Increased By ▲ 0.45 (2.81%)
HASCOL 9.90 Decreased By ▼ -0.12 (-1.2%)
HUBC 79.50 Decreased By ▼ -0.50 (-0.63%)
HUMNL 6.40 Decreased By ▼ -0.05 (-0.78%)
JSCL 20.30 Decreased By ▼ -0.11 (-0.54%)
KAPCO 40.20 Decreased By ▼ -0.74 (-1.81%)
KEL 3.88 Increased By ▲ 0.01 (0.26%)
LOTCHEM 16.45 Decreased By ▼ -0.79 (-4.58%)
MLCF 46.80 Decreased By ▼ -0.11 (-0.23%)
PAEL 35.80 Decreased By ▼ -0.37 (-1.02%)
PIBTL 10.45 Decreased By ▼ -0.04 (-0.38%)
POWER 9.33 Decreased By ▼ -0.02 (-0.21%)
PPL 84.95 Decreased By ▼ -0.79 (-0.92%)
PRL 25.08 Decreased By ▼ -0.63 (-2.45%)
PTC 9.74 Increased By ▲ 0.29 (3.07%)
SILK 1.22 Increased By ▲ 0.05 (4.27%)
SNGP 38.88 Decreased By ▼ -0.48 (-1.22%)
TRG 166.49 Increased By ▲ 6.88 (4.31%)
UNITY 30.41 Decreased By ▼ -0.34 (-1.11%)
WTL 1.50 Increased By ▲ 0.07 (4.9%)
BR100 4,841 Decreased By ▼ -11.01 (-0.23%)
BR30 25,696 Increased By ▲ 24.7 (0.1%)
KSE100 45,033 Decreased By ▼ -153.89 (-0.34%)
KSE30 18,442 Decreased By ▼ -42.92 (-0.23%)

Coronavirus
VERY HIGH
Pakistan Deaths
15,501
5824hr
Pakistan Cases
725,602
458424hr
Sindh
269,126
Punjab
250,459
Balochistan
20,321
Islamabad
66,380
KPK
99,595

NEW YORK: Treasury yields rose on Monday after data showed US new home sales surged to their highest in 10 years, reinforcing expectations the Federal Reserve will raise interest rates next month and a few more times in 2018.

US 30-year bond yields rallied from a roughly 2-1/2 month low after the data's release.

The report showed new home sales increased 6.2 percent to a seasonally adjusted annual rate of 685,000 units last month, the highest since October 2007. New home sales surged 18.7 percent on a year-on-year basis in October and have increased for three straight months.

"This series is a lot more volatile than existing home sales, so we take this with a healthy pinch of salt, but this data continue to support the notion that the housing market is in relatively good shape," said Aaron Kohli, interest rates strategist at BMO Capital Markets in New York.

The data further boosted the outlook for US interest rate increases.

The Federal Reserve has raised borrowing costs twice this year and is widely anticipated to boost rates again next month. It has forecast three rate hikes in 2018.

Increased expectations for interest rate hikes have pushed the yield curve to its flattest in a decade.

The gap between US 2-year note and US 10-year note yields contracted to 56.30 basis points, the tightest since October 2007. The gap was last at 58.30 basis points.

The difference in five-year and 30-year yields narrowed to 69.90 basis points.

"We haven't seen much to challenge the view that we expect the curve to continue to flatten on a longer horizon once the ostensibly risk-positive events of this week - tax plan vote later this week - have passed," Kohli said.

The US Congress returns from the Thanksgiving holiday to reconcile the House and Senate tax bills.

In mid-morning trading, the 10-year Treasury yield was up slightly at 2.345 percent, from 2.34 percent late on Friday.

US two-year yields, which climbed to a nine-year peak last week, rose to 1.761 percent, from 1.748 percent on Friday.

US 30-year bond yields rose to 2.772 percent, from Friday's 2.761 percent. Earlier in the session, 30-year yields touched 2.738 percent, the lowest since mid-November.

 

Copyright Reuters, 2017