New-Home Sales Lower Than Expected Reports Secured UK Loans

San Francisco, CA -- (SBWIRE) -- 02/01/2013 -- The United States treasury's prices dropped on Friday following the European banks beginning to start the repayment of larger-than-expected portions of the three-year loans provided by the region's central banking group.

Losses were held as the U.S. Commerce Department stated that the new-home figures fell farther than previously anticipated in December, while an increase in sales on the annual continued to show strong signs of life.

Yields on 10-year Treasury notes (US:10_YEAR) rose 9 basis points to 1.94%, and those on 30-year bonds (US:30_YEAR) climbed 8 basis points to 3.13%.

The bond prices move inversely to the yields pricing. A basis point is the one one-hundredth of a percentage point.

On Friday, Treasury prices came down after the European Central Bank stated that 280 banks received loans as part of a long-term financing maneuver that was enacted in December, 2011.

Economists have been expecting early repayments for nearly €100 billion; however those estimates have ranged rather widely since the structure had been created.

The repayments are considered an important step to improvement in the long-run, and the often-troubled European banking system is a concern to all those who follow the issue.

Strickland stated that he was taken aback by how will the LTRO repayment was, and that the move “says the banks don’t need the cheap money” from the ECB. But at the same time, “the bad news is that they don’t need the money; in other words, they don’t have lot of loan demand.”

At this point, the market is focusing on the “good news for bank solvency” in Europe and “ignoring the bad news regarding potential loan demand,” he said.

Data that has been collected from the U.S. Government showed that the sales of the newly constructed single-family homes fell a whopping 7.3% to a seasonal adducted annual total of 369,000 in December. The results fell short of the forecast of 385,000 that had been expected.

Still, the sales number were 8.8% higher from the same period a year ago.

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