Treasuries Move Lower On The Day But Remain Sharply Higher For The Year

Following the pullback seen in the previous session, treasuries saw some further downside during the final trading day of the year on Tuesday.

Bond prices showed a lack of direction early in the session but slid more firmly into the red as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.4 basis points to 1.919 percent.

The ten-year yield closed higher for the second straight session but still showed a steep drop for the year, tumbling by 76.7 basis points.

During the year, treasuries benefited from uncertainty generated by the trade war between the U.S. and China as well as three straight rate cuts by the Federal Reserve.

Traders largely shrugged off a report from the Conference Board showing U.S. consumer confidence dipped from an upwardly revised level in the month of December.

The Conference Board said its consumer confidence index edged down to 126.5 in December from an upwardly revised 126.8 in November.

Economists had expected the consumer confidence index to rise to 128.2 from the 125.5 originally reported for the previous month.

“While consumers’ assessment of current conditions improved, their expectations declined, driven primarily by a softening in their short-term outlook regarding jobs and financial prospects,” said Lynn Franco, Director of Economic Indicators at the Conference Board.

She added, “While the economy hasn’t shown signs of further weakening, there is little to suggest that growth, and in particular consumer spending, will gain momentum in early 2020.”

Following the New Year’s Day holiday on Wednesday, a report on weekly jobless claims may attract some attention on Thursday.

The Treasury Department is also due to announce the details of January’s auctions of three-year and ten-year notes and thirty-year bonds.

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