US homebuilders climb as bond yields retreat

Toll Brothers

19/08/2026 18:03

** Shares of interest-rate sensitive homebuilders rise as a drop in long-term bond yields improves risk appetite 
** The Treasury Department announces it would double the size of liquidity support buyback operations for longer-dated bonds
** Yields on the 30-year maturity US30YT=RR retreat from their highest level since 2007 following the announcement, last trading at 5.203%
** Yields on the benchmark U.S. 10-year note US10YT=RR  pull back from its 2025 high and last at 4.660% 
** D.R. Horton DHI.N, Lennar Corp LEN.N, PulteGroup PHM.N gain between 3.5% and 4.5%, construction equipment supplier Builders FirstSource BLDR.N climbs 7.1%
** Toll Brothers TOL.N climbs 6.9% amid the broader advance despite downbeat third-quarter results on Tuesday 
** The S&P 1500 Homebuilding index .SPCOMHOME adds 4.4%, PHLX Housing Index .HGX gains nearly 3.2% 
** Fading hopes for a Middle east peace deal and rising inflation fears pushed global bond yields to multi-decade highs on Tuesday, pressuring risk assets in major markets 
** Declining yields can potentially lead to cheaper mortgage rates, benefiting homebuilders as affordability improves for prospective buyers
** Home improvement retailer Lowe's LOW.N adds 2.5% after Q2 profit beat, Home Depot HD.N rises 1.7%

 (Reporting by Anand Gopal in Bengaluru)
 ((AnandGopal.R@thomsonreuters.com))