December existing home sales accelerated to a 4

Houston (4-1)The Cougars re-enter my Top 25 after a big 31-24 win at Mississippi State. Houston still has major problems on the defensive side of the ball They are at Tulane this Saturday.25. Their schedule has been anything but difficult, but their record is unblemished. Surprise Dec increase in existing home sales hurt bonds Bonds Funds News ETFs News China Surging debt supply weighs on longer-dated debt 20-year TIPS auction fetches higher-than-expected yield 30Y yield hits 3.42 percent; highest since early Dec (Updates with more details, changes prices) By John Parry NEW YORK, Jan 26 (Reuters) - U.S. Adding to the sell-off were weak results in a $8 billionauction of 20-year Treasury Inflation-Protection Securities(TIPS) whose yield came in above expectations despite decentdemand for them, investors said. "This is one that went really poorly," said Jamie Jackson,portfolio manager with RiverSource Investments in Minneapolis,of the latest TIPS auction. See ID:nTAR000084ID:nTAR000080 Earlier, Treasury prices fell to session lows after areport showed a surprise acceleration in the pace of existinghome sales last month, hinting that the housing market mightnot be in as dire straits as previously thought.

The 30-year bonds US30YTRR continued their recent slide,losing 2 points. Their yield rose to 3.42 percent, the highestsince early December, up 9 basis points from late on Friday. Among shorter maturities, two-year note's price was down2/32 for a yield of 0.86 percent US2YTRR. HOUSING SURPRISE Housing remains a key factor in the credit crisis and themost severe recession in many decades. Thus the existing homesales data jolted government bond prices lower. Analysts cautioned, however, that sales may have beeninflated by waves of foreclosed properties. "If we get any glimmer of hope in housing, that would be ahuge change.

If we can get clarity on the foreclosure aspect ofthis number, that could be very bullish (for the economy) andbearish for government bond prices," said Charlie Smith, chiefinvestment officer of Fort Pitt Capital Group in Greentree,Pennsylvania U.S. December existing home sales accelerated to a 4.74million unit annual rate, contrary to a predicted slowdown fromNovember's revised 4.45 million annualized pace. Lingering concerns that last week's remarks from TreasurySecretary-designate Timothy Geithner about currencymanipulation might aggravate China, the biggest foreign holderof U.S Treasuries, also weighed on bond prices, traders said. As Treasury yields have rebounded, bringing the benchmark10-year note's yield more than 60 basis points above itsmid-December five-decade lows, bond analysts have started towatch closely for signs the U.S. central bank may step into themarket to buy Treasuries.The Fed is anxious to limit the already extensive damage tothe U.S. housing market by keeping down fixed mortgage rates,which are referenced to the 10-year note yield.