By Ben Eisen, MarketWatch
NEW YORK (MarketWatch) -- Treasury prices fell Tuesday as
equities rose in the U.S. and Europe, sapping some demand from safe
U.S. government debt.
The 10-year Treasury note (10_YEAR) yield, which rises as prices
fall, climbed 1 basis point to 2.502%.
U.S. futures and European stocks were up after euro zone
inflation hit a five-year low, potentially putting pressure on the
European Central Bank to ramp up its easing measures.
Market participants also speculated that Pimco was offloading
some of its holdings in order to meet redemptions as investors
pulled money out of the world's largest bond fund manager. The
onslaught of redemptions come in the wake of the high profile
departure of chief investment officer Bill Gross. Pimco $3.1
billion Total Return exchange-traded fund (BOND) had a record $446
billion in outflows after Gross left, Bloomberg reported, citing
its own data.
The Pimco news pushed U.S. Treasurys weaker on Friday, though
the market showed signs of recovery Monday.
On the economic data front, U.S. home prices rose 0.6% in July.
Also on the data docket today: the Chicago PMI is set to be
released at 9:45 a.m., and consumer confidence data comes out at 10
a.m.
Treasurys could make larger moves as the session progresses,
given that large institutional holders of Treasurys may shift at
least some holdings, ahead of the end of the quarter.
The 30-year bond (30_YEAR) yield rose a basis point to 3.189%
and the 5-year note (5_YEAR) yield rose a basis point to
1.783%.
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