Housing starts fall for a third straight month and Treasury yields slip
September starts came in at 1.22 million, below forecasts; the 10-year yield dipped to about 5.09%.
U.S. housing starts fell 5.2% in September to a seasonally adjusted annual rate of 1.221 million, missing the roughly 1.3 million economists expected, per CNBC and Trading Economics. It was the third straight monthly decline and the lowest level since May's six-year low, per Trading Economics.
Single-family starts fell 4.6% to 859,000, their lowest in a year, and multi-family starts dropped 7.2%, per Trading Economics. The weakness fits Monday's builder survey, which showed sentiment at its lowest since 2012 - see our homebuilder story.
Treasury yields eased on the data. The 10-year yield was down more than 4 basis points at about 5.09% and the 2-year about 1 basis point lower at 4.75% in early trading, per CNBC. Traders see an 85% chance the Federal Reserve holds rates at next week's meeting, per the CME FedWatch Tool as cited by CNBC.
