Following the strong upward move seen over the previous session, treasuries saw some further upside during trading on Tuesday.
Bond prices moved higher over the course of morning trading before moving roughly sideways in the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 4.1 basis points to 2.054 percent.
The strength among treasuries came amid continued weakness among stocks, which failed to sustain an early rebound and extended the steep drop seen on Monday.
Treasuries also benefited from their appeal as a safe haven due to lingering concerns about the outlook for interest rates and the global economy.
Meanwhile, traders largely shrugged off a report from the Conference Board showing an unexpected improvement in U.S. consumer confidence in the month of September.
The Conference Board said its consumer confidence index climbed to 103.0 in September from 101.3 in August, while economists had expected the index to pull back to 96.0.
“Consumer confidence increased moderately in September, following August’s sharp rebound,” said Lynn Franco, Director of Economic Indicators at the Conference Board.
The unexpected increase by the consumer confidence index was fueled by a more positive assessment of current conditions.
Economic data may attract attention on Wednesday, with traders likely to keep an eye on reports on private sector employment and Chicago-area business activity.
The material has been provided by InstaForex Company – www.instaforex.com