Treasuries moved modestly higher during trading on Wednesday, extending the upward move seen over the course of the previous session.
Bond prices experienced some volatility in early trading but hovered in positive territory throughout the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by 1.8 basis points to 2.322 percent.
The modest strength among treasuries was partly due to continued weakness on Wall Street, as traders once again reacted negatively to the latest earnings news.
The tech-heavy Nasdaq showed a notable decline on the day, as tech giants Apple (AAPL) and Microsoft (MSFT) came under pressure after reporting their quarterly results.
Treasuries may also have benefited from caution ahead of a Greek parliament vote on further austerity measures needed for additional bailout funds.
Greek Prime Minister Alexis Tsipras is reportedly trying to rally support ahead of the vote amid growing opposition from within his own anti-austerity Syriza party.
On the U.S. economic front, the National Association of Realtors released a report showing a bigger than expected increase in existing home sales in June.
NAR said existing home sales climbed 3.2 percent to an annual rate of 5.49 million in June from a downwardly revised 5.32 million in May. Economists had expected existing home sales to edge up to an annual rate of 5.40 million.
With the bigger than expected increase, existing home sales are now are their highest level since reaching 5.79 million in February of 2007.
Trading on Thursday could be impacted by reaction to U.S. reports on weekly jobless claims and leading economic indicators.
The material has been provided by InstaForex Company – www.instaforex.com