Following the pullback seen over the two previous sessions, treasuries regained ground during the trading day on Tuesday.
Bond prices moved steadily higher in morning trading and remained firmly positive throughout the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, slid 3.9 basis points to 1.562 percent.
The rebound by treasuries came as stocks on Wall Street saw further downside, inspiring some traders to move their money into the relative safety of bonds.
Traders continued to cash in on the recent strength among stocks after the Dow and the S&P 500 ended last Friday’s trading at new record closing highs.
A new wave of coronavirus infections overseas also contributed to the strength among amid concerns about new restrictions and the impact on the global economy.
The economic calendar remains relatively quiet on Wednesday, although bond traders are likely to keep an eye on the results of the Treasury Department’s twenty-year bond auction.
The material has been provided by InstaForex Company – www.instaforex.com