Treasuries Give Back Ground Following Recent Strength

(RTTNews) - After moving sharply higher in recent sessions, treasuries gave back some ground over the course of the trading day on Tuesday.

Bond prices moved to the downside in early trading and remained stuck in the red throughout the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 4.3 basis points to 2.624 percent.

With the moderate increase on the day, the ten-year yield bounced off the three-month closing low set in the previous session.

Profit taking contributed to the pullback by treasuries, although continued weakness in emerging markets helped to keep selling pressure subdued.

On the economic front, the Commerce Department released a report showing a notable drop in new orders for U.S. manufactured goods in the month of December.

The report said factory orders fell by 1.5 percent in December following a revised 1.5 percent increase in November. Economists had expected orders to drop by about 1.8 percent compared to the 1.8 percent growth originally reported for the previous month.

However, excluding a sharp drop in orders for transportation equipment, factory orders actually rose by 0.2 percent in December compared to a 0.3 percent increase in November.

Trading on Wednesday may be impacted by the release of a pair of economic reports, with traders likely to keep an eye on reports on private sector employment and service sector activity.