10 yr. bond prices held steady yesterday as the stock market struggled and the equity markets tried to digest the impact of the sub-prime equity funds. Bond prices have remained firm this morning on the heels of a weaker than expected New Home Sales number and dropping consumer confidence.
New Home Sales fell 1.6% in May to a seasonally adjusted annual rate of 915,000 units, which was below the 930,000 number expected. A separate report released Tuesday showed that home prices in ten of the largest U.S. cities fell at the fastest pace in 16 years in April.
Consumer Confidence Index fell to 103.9 in June, down from 108.5 in May. This is the lowest number since August.