After an initial move to the downside, treasuries regained some ground but still moved modestly lower during trading on Tuesday.

Bond prices climbed off their worst levels before moving roughly sideways in afternoon trading. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by 1 basis point to 2.983 percent.

The ten-year yield reached an intraday high above 3 percent for the first time since early 2014 and ended the session at its highest closing level in over four years.

The initial weakness among treasuries came following the release of some upbeat economic data, including a report from the Commerce Department showing a bigger than expected increase in new home sales in the month of March.

The report said new home sales soared by 4.0 percent to an annual rate of 694,000 in March after surging up by 3.6 percent to a revised rate of 667,000 in February. Economists had expected new home sales to climb by 1.9 percent.

With the bigger than expected increase, new home sales rose to their highest annual rate since hitting 711,000 last November. New home sales were up by 8.8 percent year-over-year.

A separate report from the Conference Board showed an unexpected improvement in consumer confidence in the month of April.

The Conference Board said its consumer confidence index rose to 128.7 in April from a revised 127.0 in March. Economists had expected the index to dip to 126.1 from the 127.7 originally reported for the previous month.

"Overall, confidence levels remain strong and suggest that the will continue expanding at a solid pace in the months ahead," said Lynn Franco, Director of Economic Indicators at the Conference Board.

Treasuries may extend their recent downward trend during trading on Wednesday, although trading activity is likely to be somewhat subdued amid a quiet day on the U.S. economic front.

by P2PNews Staff Writer

editorial@p2pnews.com

Market AnalysisBB

Image Credit: P2P Media