Saturday, 17 August 2013

US consumer confidence falls but Treasury yields rise with housing starts

US economic data on Friday were mixed.

The preliminary reading of the Thomson Reuters/University of Michigan consumer sentiment index fell to 80.0 in August from a six-year high of 85.1 in July.

Housing starts rose 5.9 percent to an annual rate of 896,000 units in July. This, however, was below economists' forecasts for a 900,000-unit rate.

Building permits rose 2.7 percent in July to a 943,000-unit pace. This, again, was below economists' expectations for a 945,000-unit pace.

Despite the mixed economic data, investors appear to have raised bets on an imminent tapering of bond purchases by the Federal Reserve.

US Treasuries fell on Friday. The 10-year Treasury yield rose six basis points to 2.83 percent, the highest since July 2011.

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