August 25th, 2010
08:25 PM ET

Stocks recover from housing blues; treasury edge higer

Stocks creep out of housing slump
Stocks turned slightly higher Wednesday as investors looked for bargains following another round of dismal housing news.

The Dow Jones industrial average gained 18 points, or 0.2 percent, the S&P 500 rose 3 points, or 0.3 percent, and the Nasdaq composite edged up 13 points, or 0.6 percent. 

All three major indexes sold off sharply immediately following the housing data but managed to recoup some losses as homebuilding and housing material stocks crept higher.

10-year Treasury yield bounces off 19-month low
Treasury yields edged higher Wednesday, rebounding from earlier lows, as investors digested a $36 billion sale of 5-year notes and another dour report on the housing market.

The yield on the benchmark 10-year note rose to 2.54 percent from 2.49 percent late Tuesday, when the yield fell to the lowest level since Jan. 20, 2009, according to data from the Federal Reserve.

The yield on the 2-year note rose to 0.53 percent after holding near record lows this week. The 5-year yield rose to 1.38 percent; the 30-year yield edged up to 3.57 percent.

Meanwhile, the 5-year note auction received bids totaling $101.7 billion for the $36 billion worth of notes sold. The bid-to-cover ratio, a measure of demand, was 2.83. That's down from last 5-year sale in July, but above this
year's average of 2.74.

It was the second of three auctions aimed at selling $102 billion in U.S. debt this week. Demand at Tuesday's sale of $37 billion worth of 2-year notes was firm, but came in slightly weaker than previous 2-year sales this year. The U.S. will offer $29 billion in 7-year notes on Thursday. reporters Blake Ellis and Ben Rooney contributed to this report.

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soundoff (3 Responses)
  1. brandon

    This Just In: who cares.

    August 25, 2010 at 9:12 pm | Report abuse |
  2. Hoot



    August 26, 2010 at 9:44 am | Report abuse |
  3. KidKreole

    I like higer.

    August 26, 2010 at 1:23 pm | Report abuse |