Treasuries Close Modestly Higher Following Yesterday's Weakness

(RTTNews) - Treasuries moved modestly higher during trading on Tuesday, regaining some ground after ending the previous session firmly in the red.

After moving to the upside in morning trading, bond prices pulled back off their highs in the afternoon but still closed in positive territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.6 basis points to 2.775 percent.

With the modest decrease on the day, the ten-year yield moved back to the downside after ending Monday's trading at a two-month closing high.

The modest strength among treasuries came as traders went bargain hunting following the weakness seen in the previous session, which reflected worries about the outlook for the Federal Reserve's asset purchase program.

Nonetheless, activity was somewhat subdued amid a lack of major U.S. economic data, with traders looking ahead to the release of a slew of data in the coming days.

Trading on Wednesday is likely to be impacted by the release of reports on private sector employment, new home sales and service sector activity.