Upward Move in Stocks Keeps Bonds Flat
US government debt prices were flat Wednesday, trimming earlier gains, as the stock market's move into positive territory dimmed the safe-haven appeal of bonds.
The price of benchmark 10-year notes, which moves inversely with yield, was off 1/32 at 96-19/32 after posting an earlier high of 97-4/32. Ten-year yield last traded 3.91 percent, up from a session low of 3.85 percent.
Early losses were incurred when the Labor Department reported bigger-than-expected consumer price gains in January.
News that housing starts rose 0.8 percent in January was in line with expectations and had scant market impact, said Kevin Flanagan, fixed income strategist for global wealth management with Morgan Stanley in Purchase, N.Y.
Earlier news from a mortgage industry group that mortgage applications plunged last week, and that demand hit the lowest level since the start of the year as interest rates surged, had little market impact as it only bore out the widely accepted view that the housing sector is weak.