After moving sharply higher over the two previous sessions, treasuries showed a lack of direction throughout the trading day on Tuesday.
Bond prices spent the day bouncing back and forth across the unchanged line before closing roughly flat. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by less than a basis point to 1.461 percent.
The lackluster performance by treasuries came even though stocks showed a substantial move back to the upside on the day.
Bargain hunting contributed to the rebound on Wall Street, with traders picking up stocks at reduced levels following the steep losses posted in the two sessions following the Brexit vote.
On the U.S. economic front, the Commerce Department released a report showing that economic activity increased faster than previously estimated in the first quarter of 2016.
The Commerce Department said the pace of growth in gross domestic product was upwardly revised to 1.1 percent from the previous estimate of 0.8 percent.
The revised GDP growth in the first quarter compares to the 1.4 percent jump seen in the fourth quarter and the 1.0 percent increase expected by economists.
A separate report from the Conference Board showed a much bigger than expected improvement in consumer confidence in the month of June.
The Conference Board said its consumer confidence index jumped to 98.0 in June from a revised 92.4 in May. Economists had been expecting the index to inch up to 93.3.
Trading on Wednesday may be impacted by reaction to reports on personal income and spending and pending home sales.
The material has been provided by InstaForex Company – www.instaforex.com