As U.S. growth increases, treasuries have fallen, according to recent data which revealed growth in both business equipment orders as well as home purchases. Meanwhile, Benchmark notes increased yesterday as concerns regarding the Eurozone heighten and reports revealed that U.S. consumer confidence has fallen.
“The Conference Board consumer confidence report is important, but the reaction was probably excessive,” said Alessandro Mercuri of Lloyd Bank Corporate Markets in London. “We’ve had a streak of stronger data. If we have a softening of concerns in Europe, we might have a bear steepening in the U.S.”