Treasuries Show Modest Move Back To The Upside
After pulling back near the unchanged line over the course of the session, treasuries moved modestly higher during trading on Tuesday.
Bond prices moved to the upside early in the session and remained in positive territory throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.3 basis points to 0.918 percent.
Treasuries benefited from their appeal as a safe haven amid lingering concerns about the new coronavirus strain in the U.K. and the potential impact on the global economic recovery.
Buying interest may also have been generated in reaction to some disappointing economic data, including a report from the Conference Board showing consumer confidence in the U.S. has unexpectedly decrease in the month of December.
The Conference Board said its consumer confidence index slid to 88.6 in December from a downwardly revised 92.9 in November.
Economists had expected the consumer confidence index to inch up to 97.0 from the 96.1 originally reported for the previous month.
“Consumers’ assessment of current conditions deteriorated sharply in December, as the resurgence of COVID-19 remains a drag on confidence,” said Lynn Franco, Senior Director of Economic Indicators at The Conference Board.
The National Association of Realtors also released showing existing home sales pulled back in the month of November after moving sharply higher for five straight months.
NAR said existing home sales tumbled by 2.5 percent to an annual rate of 6.69 million in November after jumping by 4.4 percent to a revised rate of 6.86 million in October.
Economists had expected existing home sales to slump by 2.2 percent to a rate of 6.70 million from the 6.85 million originally reported for the previous month.
Meanwhile, the Commerce Department released revised data showing the U.S. economy grew by slightly more than previously estimated in the third quarter of 2020.
Traders largely shrugged off news that both the House and Senate have passed a new stimulus bill that includes federal assistance for the unemployed, small businesses and healthcare providers as well as $600 in direct payments to individuals.
The relief package was attached to a $1.4 trillion government spending bill that funds the government through September 30th. The bill is expected to be signed by President Donald Trump in the coming days.
A slew of U.S. economic data may attract attention on Wednesday, with traders likely to keep an eye on reports on weekly jobless claims, durable goods orders, personal income and spending, new home sales and consumer sentiment.
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