Interest rates mixed after Bernanke predicts low rates, govt issues downbeat housing data

Bernanke’s comments leave interest rates mixed

WHAT KIND OF NEWS DID BERNANKE HAVE FOR BOND INVESTORS: The Fed chairman said rates would remain low. That’s a good sign for bond prices, which move in an opposite direction from interest rates.

SO WHY DID THE MARKET CLOSE MIXED: Demand at the latest Treasury auction, for five-year notes, was lower than expected.

WHAT’S AHEAD FOR BONDS: An auction for $32 billion of seven-year notes on Thursday. And next week, the first economic reports for February.