Worst housing slump in a quarter century

U.S. Treasuries were little changed, with 10-year yields close to the highest level since February, before the government sells $15 billion of the maturity today. The Treasury Department's auction today will be the biggest for 10-year notes in four years. The government will also sell $6 billion of 30-year bonds tomorrow as part of its quarterly refunding program.

The head of government bond trading for Standard Chartered quoted that he expects the Fed to be aggressive in the take back of all of the easings. According to him, we may see an increase of 75 to 100 bps in the Fed Funds rate a lot quicker than most people think. Well, the Fed giveth and the Fed taketh away I suppose.

Pending home sales fell 1 percent in March after a revised drop in February of 2.8 percent that was bigger than previously reported, according to the National Association of Realtors. Recent reports indicate the worst housing slump in a quarter of a century is far from abating. Purchases of new homes plunged in March to the lowest level in almost 17 years, while the median price fell the most in almost four decades, according to the Commerce Department.