U.S. Treasury prices were mixed, but little changed early Friday after a quiet and narrowly traded overnight session and the early miss on housing data. The 10-year Treasury yield was little changed at 2.165% from a 2.162% close and an overnight high near 2.18%. European bonds were modestly lower, though losses were pared with peripheral markets underperforming. Asian sovereigns closed in the red with the Japanese Government Bond rate edging up to 0.046% as the Nikkei rallied and the yen softened while the Bank of Japan left policy unchanged, as expected, but noted improvement in exports and consumption. The People’s Bank of China injected some cash into the system and helped allay liquidity fears. U.S. equity futures are slightly firmer.
Housing starts fell to 1.092 million in May (consensus: 1.223 million) after falling to 1.156 million in April (revised from 1.172 million). Building permits were down to 1.168 million from a revised 1.229 million (consensus 1.249 million).