Treasury Market Reaches 2-Week High, Monday, June 25, 2007 3:30:06 PM

Treasury bonds gained ground on Monday, pushing yields lower. With the move, the market climbed to its highest level in more than 2 weeks. Trading took place amid the release of the first of this week`s key housing reports.

Treasuries rose steadily for the first hour or so of the session. There was a moderation during the middle of the day, but bonds drifted back toward their highs as the close approached. The advance added to a gain posted on Friday and took the market reached its highest level since June 7. The yield on the benchmark 10-year treasury dropped 6 basis points to close at 5.078%.

During the morning, the National Association of Realtors revealed that sales of previously-existing homes ticked down 0.3% in May to reach an annual rate of 5.99 million units. This largely matched the expectation of analysts. Meanwhile, housing inventories climbed 5% in the month. On Tuesday, the government will announce sales of newly-built homes.

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