Treasury Bonds Continue To Rise Tuesday; 10-Year Yield Dips Below 5.1%, Tuesday, June 19, 2007 3:31:31 PM

Treasury bonds rose again on Tuesday, adding to an upswing that has marked the past several days. The move drove treasury yields lower, taking the yield on the benchmark 10-year note below the 5.1% mark for the first time in about a week and a half. Trading took place amid the release of data indicating that new home construction declined as expected in May.

Bonds rose during much of the morning and added to their gains in the afternoon. The move drove treasury yields lower, with the yield on the benchmark 10-year note dropping 5.6 basis points to finish at 5.086%.

The U.S. Commerce Department revealed that housing starts fell 2.1% in May to reach an annual rate of 1.474 million units. This compared to a rate of 1.506 million units in April. The slide was largely in line with what economists were projecting. Tuesday`s report also showed that building permits rose by 3% in May to reach an annual rate of 1.501 million units.

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