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Treasury Yields Reverse Mid-Week Bump

  Bond market yields retreated from their mid-week highs as Treasury yields ended very close to where they started the week.  Early in the week, bond prices fell as equity markets rose to new highs and consumer confidence measures beat expectations.  However, those moves were mostly reversed later in the week as the  Treasury market drew flows from the volatility still engulfing emerging markets. 

In addition to Tuesday's strong consumer confidence data, the week's economic calendar included relatively robust personal income and spending data from July.  Weekly jobless claims were also robust, as continuing claims for unemployment insurance continue to plumb generational lows.  Despite the positive labor market and confidence readings, the housing market remains a weak spot, as pending home sales declined in July.  Affordability constraints are being cited as the driver for the weakness, as rising home prices and mortgage rates outpace wage gains.

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