Advertisement
UK markets closed
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • FTSE 250

    19,884.73
    +74.07 (+0.37%)
     
  • AIM

    743.26
    +1.15 (+0.15%)
     
  • GBP/EUR

    1.1699
    +0.0005 (+0.05%)
     
  • GBP/USD

    1.2620
    -0.0002 (-0.01%)
     
  • Bitcoin GBP

    56,002.74
    +895.74 (+1.63%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • DOW

    39,807.37
    +47.29 (+0.12%)
     
  • CRUDE OIL

    83.11
    -0.06 (-0.07%)
     
  • GOLD FUTURES

    2,254.80
    +16.40 (+0.73%)
     
  • NIKKEI 225

    40,347.54
    +179.47 (+0.45%)
     
  • HANG SENG

    16,541.42
    +148.58 (+0.91%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • CAC 40

    8,205.81
    +1.00 (+0.01%)
     

TREASURIES-Yields rise as stocks gain, retail sales data shows strength

* Yields rise from 1-1/2 -month lows as stocks stabilize

* U.S. retail sales data points to stronger economy

* Fed to buy $900 million to $1.15 billion bonds due

2036-2044

* Inflation, manufacturing data in focus this week

By Karen Brettell

NEW YORK (Frankfurt: HX6.F - news) , April 14 (Reuters) - U.S. Treasuries yields rose

on Monday as stocks stabilized from a bruising selloff and

better-than-expected retail sales data boosted expectations that

growth is picking up after months of weakness blamed in part on

bad weather.

Investors are focused on a busy week of data releases for

signs about the strength of the economy as the Federal Reserve

ADVERTISEMENT

pares its bond purchases and looks towards interest rate hikes

that most expect to begin next year.

Yields hit session highs on Monday after U.S. retail sales

recorded their largest gain in 1-1/2 years in March in the

latest sign the economy was emerging from its weather-induced

slumber and on track to accelerate in the second quarter.

The data showed that growth is recovering from

weather-related weakness, said Ian Lyngen, an interest rate

strategist at CRT Capital in Greenwich, Connecticut. "It gave a

boost to stocks and weighed on Treasuries," he said.

Benchmark 10-year notes were last down 5/32 in

price to yield 2.64 percent, after dropping to a 1-1/2-month low

of 2.60 percent in overnight trading.

Treasuries yields had dropped on safety buying last week

after investors nervous over the valuations of some companies

fled stocks and sought out lower-risk investments. Overnight

buying sparked by tensions in Ukraine also helped bonds rally

before the U.S. session began.

Ukraine's president threatened military action after

pro-Russian separatists occupying government buildings in the

east ignored an ultimatum to leave and another group of rebels

attacked a police headquarters in the region.

Safety buying of Treasuries ebbed on Monday in early U.S.

trading as stock futures firmed, with earnings from Citigroup (TLO: CIT-U.TI - news)

helping sentiment after the bank said its quarterly net

profit rose on a smaller loss on its troubled assets.

Economic data releases including consumer price inflation

data on Tuesday and several manufacturing surveys will be in

focus for further signs of economic strength this week. Fed

Chair Janet Yellen is also due to speak on Tuesday at a markets

conference and on Wednesday at an economic event.

The U.S. central bank will buy between $900 million and

$1.15 billion in bonds due between 2036 and 2044 on Monday as

part of its ongoing purchases.

(Editing by James Dalgleish)