Treasuries Climb Further Off Recent Lows
Treasuries moved higher over the course of the trading session on Tuesday, extending the rebound seen over the two previous sessions.
Bond prices initially showed a lack of direction but climbed firmly into positive territory as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 3.1 basis points to 1.415 percent.
With the drop on the day, the ten-year yield continued to give back ground after ending last Thursday’s trading at its highest closing level in a year.
The continued advance by treasuries came as traders picked up bonds at relatively reduced levels following the sharp decline seen over the past few weeks.
The yield on the ten-year note spiked to an intraday high over 1.6 percent last Thursday amid concerns about the outlook for interest rates.
Trading activity was somewhat subdued on the day, however, with a lack of major U.S. economic data keeping some traders on the sidelines.
Reports on private sector employment and service sector activity may attract attention on Wednesday along with the Federal Reserve’s Beige Book.