AGG At 52-Week Low; T-Note Yield Hits 2.13%

By
A A A

Yields on 10-year U.S. Treasurys hit their highest level in 13 months early Tuesday, breaking above 2.11 percent amid a stock market rally that was centered on what appears to be improving sentiment about the U.S. economy's short-term outlook.

The latest round of fresh data released Tuesday included a positive read on consumer confidence-the Conference Board's monthly Consumer Confidence Survey showed U.S. consumer confidence in May came in at a five-year high.

Tuesday also brought the latest read on the U.S. housing market-for the third-straight month, U.S. home values rose year-on-year, with average home prices up more than 10 percent in the past year ended March, according to the S&P/Case-Shiller Home Price report.

The data helped push the U.S. stock market higher, with the S&P 500 Index and the Dow Jones industrial average each up just under 1 percent Tuesday. The momentum also pushed yields on 10-year notes up more than 6 percent to 2.13 percent-their highest level since April 2012. As bond prices drop, yields rise.

Funds like the iShares Core Total Bond Market Fund (NYSEArca:AGG), tracking the broad Barclays U.S. debt index comprising largely U.S. Treasurys, were again losing ground. AGG dropped below a 52-week low at the outset Tuesday, and worked its way lower to $109.17 a share at one point, its lowest price strike since March 2012.

AGG, which has more than $15 billion in assets, has now dropped 1.5 percent in the past month alone, as U.S. stocks have rallied.

"Consumers' assessment of current business and labor-market conditions was more positive and they were considerably more upbeat about future economic and job prospects," Lynn Franco, director of Economic Indicators at the Conference Board, said in a press release.

"Back-to-back monthly gains suggest that consumer confidence is on the mend and may be regaining the traction it lost due to the fiscal cliff, payroll-tax hike and sequester," Franco said.

Permalink | 'copy; Copyright 2009 IndexUniverse LLC. All rights reserved

Don't forget to check IndexUniverse.com's ETF Data section.

Copyright ® 2013 IndexUniverse LLC . All Rights Reserved.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , ETFs

Referenced Stocks: AGG

IndexUniverse

IndexUniverse

More from IndexUniverse:

Related Videos

Stocks

Referenced

Most Active by Volume

24,595,764
  • $16.0999 ▲ 0.56%
22,058,345
  • $102.45 ▲ 0.20%
21,774,353
  • $19.421 ▲ 1.57%
18,317,205
  • $49.59 ▲ 0.32%
15,023,902
  • $13.08 ▼ 0.23%
14,970,409
  • $53.58 ▲ 18.30%
14,792,781
  • $34.89 ▲ 0.69%
12,804,451
  • $74.7025 ▲ 1.15%
As of 8/29/2014, 01:03 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com