Treasuries Close Modestly Lower After Another Lackluster Session

(RTTNews) - After ending the previous session nearly flat, treasuries turned in another relatively lackluster performance on Wednesday before closing modestly lower.

Bond prices bounced back and forth across the unchanged line but ended the day on the downside. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged up by 1.6 basis points to 1.477 percent.

The modestly lower close by treasuries came amid a continued rally on Wall Street, with stocks adding to the strong gains posted on Tuesday.

The strength on Wall Street came as the global markets continued to recover from the sell-off inspired by the British vote to leave the European Union.

Easing concerns about the impact of the so-called Brexit led traders to go bargain hunting following the steep losses posted on Friday and Monday.

With regard to the Brexit, European leaders are meeting in Brussels to discuss the way forward after the unexpected vote.

The EU leaders continue to urge Britain to act quickly on the vote while also expressing hope that the U.K. will remain a close partner.

On the U.S. economic front, the Commerce Department released a report this morning showing that personal income rose by slightly less than expected in May.

The report said personal income edged up by 0.2 percent in May after rising by an upwardly revised 0.5 percent in April. Economists had expected income to rise by 0.3 percent.

Meanwhile, the Commerce Department also said personal spending climbed by 0.4 percent in May after spiking by an upwardly revised 1.1 percent in April. The increase matched economist estimates.

A separate report from the National Association of Realtors showed a bigger than expected pullback in pending home sales in the month of May.

NAR said its pending home sales index slid 3.7 percent to 110.8 in May from a downwardly revised 115.0 in April. Economists had expected the index to drop by 1.0 percent.

A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale.

While any Brexit news could impact trading on Thursday, traders are also likely to keep an eye on reports on weekly jobless claims and Chicago-area business activity.