Bonds dip in profit taking

The 10-year Treasury benchmark loses 13/32 to yield 4.78 percent.


NEW YORK (CNNMoney.com) -- Bonds dipped Wednesday as profit taking from a recent rally overshadowed the release of soft economic reports. The dollar gained slightly against the euro and the yen.

The 10-year lost 13/32, or $4.06 on every $1,000 spent, to yield 4.78 percent, up from 4.74 percent Tuesday evening. The 30-year declined 12/32, or $3.75 on a $1,000 bond, to yield 4.92 percent up from 4.90 percent. Bond prices and yields move in opposite directions.

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ECONOMY

The 5-year fell 11/32 to yield 4.64 percent, while the 2-year lost 5/32 to yield 4.60 percent.

Bonds have been trading inversely to stock prices but that relationship was less evident on Wednesday, as equities traded flat to lower, Reuters reported.

"In the short term, bonds were overbought, without a doubt," William O'Donnell, director of interest rate strategy at UBS in Stamford, Connecticut, told Reuters.

A report from ADP showed the private sector likely added 48,000 jobs in July, well below economists' expectations for a reading of 100,000.

The Institute for Supply Management's index of national factory activity for July came in at its lowest level since March and below forecasts. The index fell to 53.8, down from 56.0 in June. Analysts had been looking for a more modest dip to 55.5, although any reading above 50 still points to expansion.

Some brighter news for the economy and the slumping housing market came from June pending home sales, which rose unexpectedly when analysts had been looking for a decline.

The latest reading on the state of the battered U.S. real estate market showed surprising strength as the pending home sales index jumped 5 percent to 102.4 in June. Economists surveyed by Briefing.com had forecast the index would slip 0.6 percent after a revised 3.7 percent drop in the May report.

In currency trading, the euro bought $1.367 down from $1.368. The dollar bought ¥118.79 up from ¥118.53 in the previous session.

-- from staff and wire reports  Top of page

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.