Bonds edge down on oil prices, home sales

NEW YORK (CNNMoney.com) -- Bond prices edged down Tuesday as the price of oil fell and earlier reports showed continued weakness in new home sales and consumer confidence. The dollar traded higher against the euro and lower against the yen.

The 10-year Treasury benchmark lost 3/32, or 94 cents, to yield 5.10 percent, up from 5.08 percent Monday. The 30-year bond lost 7/32, or $2.18 to yield 5.22 percent up from 5.20 percent in the previous session. Bond prices and yields move in opposite directions.

The five-year note lost 2/32 to yield 4.98 percent, while the two-year note went unchanged to yield 4.89 percent.

Oil prices fell nearly two percent on Tuesday amid expectations that stockpiles in top consumer the United States would continue to rise heading into the peak summer driving season.

New home sales and prices continued to fall in May, according to the latest government report on the battered housing market that came in weaker than Wall Street forecast.

The pace of sales came in at an annual rate of 915,000 in the month, according to the Census Bureau report, down from the 930,000 annual pace in April, which was also revised lower. Economists surveyed by Briefing.com had forecast that sales would retreat to a 925,000 rate in May.

Consumer confidence fell further than expected in June, to a 10-month low, as Americans grew anxious about jobs and the business climate, a survey showed Tuesday.

The Conference Board said its index of consumer sentiment slid to 103.9 in June, the lowest since August 2006, from an upwardly revised 108.5 in May.

The median forecast of economists polled by Reuters was for 105.5, down from an originally reported May reading of 108.0.

In currency trading, the euro bought $1.346, down from $1.347 Monday, while the dollar bought ¥123.27, down from ¥123.59.

--from staff and wire reports