Treasuries Pull Back Sharply Following Recent Strength

(RTTNews) - After moving sharply higher over the past several sessions, treasuries showed a substantial move back to the downside on Tuesday.

Bond prices moved steadily lower for much of the session before closing firmly in negative territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 13.6 basis points to 2.133 percent.

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

The pullback by treasuries came amid a rally on Wall Street, with stocks rebounding after falling sharply over the past few days.

The Dow was up by about 250 points, regaining some ground after ending Monday's trading at its lowest closing level since February of 2014.

On the U.S. economic front, the Commerce Department released a report showing a notable rebound in new home sales in the month of July.

The report said new home sales jumped to an annual rate of 507,000 in July, 5.4 percent above the revised June rate of 481,000.

Economists had expected new home sales to climb to a rate of 516,000 from the 482,000 originally reported for the previous month.

A separate report from the Conference Board showed a substantial improvement in consumer confidence in the month of August.

The Conference Board said its consumer confidence index jumped to 101.5 in August from 91.0 in July. The index had been expected to show a more modest increase to a reading of 94.0.

Trading on Wednesday may be impacted by reaction to the Commerce Department's report on durable goods orders in the month of July.