U.S. Treasury yields inched higher on Wednesday morning, following the government’s October housing starts and building permits report.
The yield on the benchmark 10-year Treasury note fell more than 1 basis point to 1.618% at 12:05 p.m. ET. The yield on the 30-year Treasury bond edged less than 1 basis points lower to 2.016%. Yields move inversely to prices and 1 basis point is equal to 0.01%.
On Wednesday the Commerce Department reported homebuilding in October fell 0.7% to an annual rate of 1.52 million units, short of expectations. Permits in October rose 4% to an annual rate of 1.65 million, topping estimates.
The Commerce Department reported on Tuesday that retail spending in October accelerated at its fastest pace since the 1990s, rising by 1.7%, up from 0.8% in September.
Meanwhile, the November National Association of Home Builders Housing Market index rose more than expected, to its highest point since last May.
This strong batch of economic data coincides with concerns about rising inflation and how quickly the Federal Reserve will subsequently pull back its emergency stimulus measures.
Fed Governor Christopher Waller is scheduled to offer his thoughts on stablecoins — digital currencies whose value is linked to an underlying asset — at the Federal Reserve Bank of Cleveland and Office of Financial Research 2021 Conference on Financial Stability, at 12:40 p.m. ET.
Auctions are due to be held on Wednesday for $40 billion of 119-day bills, $40 billion of 22-day bills and $23 billion of 20-year bonds.
— CNBC’s Jeff Cox and Diana Olick contributed to this market report.
