Treasury yields climbed after data showed U.S. homebuilding surged to a 13-year high
Treasury yields climbed after data showed U.S. homebuilding surged to a 13-year high in December. The yield on the benchmark 10-year Treasury note, which moves inversely to price, rose 3 basis points to 1.84%, while the yield on the 30-year Treasury bond was also higher at around 2.31%. Housing starts jumped 16.9% to a seasonally adjusted annual rate of 1.608 million units last month, the highest level since December 2006. The percentage gain was the largest since October 2016.
The winning streak in emerging markets may hinge on whether central banks have finally done enough to bring about an economic turnaround. With policymakers in developing economies widely seen as being in the final stages of their easing cycle, the bulls will be hoping data on Friday that showed China’s economy expanded 6% in December is a sign of things to come. Analysts have raised their earnings-per-share estimates for emerging-market companies for the following 12 months by more than 1% compared with the end of June. The International Monetary Fund is due to give updated economic forecasts on Monday. (Bloomberg)