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TREASURIES-Bonds fall on profit-taking, less-dire homes data

Tue Jun 30, 2009 9:50pm IST
 
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* Bonds hit by profit-taking on recent gains

* Home prices show smaller-than-expected dip in April

* Losses limited by confidence data, lower stocks (Adds background on second-quarter trade, updates prices)

By Chris Reese

NEW YORK, June 30 (Reuters) - U.S. Treasury debt prices fell on Tuesday as traders booked profits on recent price gains and a report showing home price data that was not quite as dire as forecast.

Losses were limited, however, as weakness in stocks and data showing lower consumer confidence in June helped to maintain at least some interest in Treasuries as a safe-haven investment.

Bond prices have generally been rising and yields falling since mid-June, in part on relief over Treasury auctions that have shown there is still a global appetite for the deluge of new U.S. government debt. On Tuesday, however, investors decided to take back some of the recent price gains.

"Prices are under pressure, both on profit-taking from recent gains and on the better-than-expected Case-Schiller home price figures," said John Canavan, analyst with Stone & McCarthy Research Associates in Princeton, New Jersey.

Benchmark 10-year Treasury notes US10YT=RR were trading 5/32 lower in price for a yield of 3.50 percent, up from 3.48 percent late on Monday.   Continued...

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