Treasuries Move Back To The Downside On Upbeat Economic Data

(RTTNews) - Treasuries moved moderately lower during trading on Tuesday, offsetting the modest strength seen in the previous session.

After coming under pressure in early trading, bond prices regained some ground as the day progressed but remained in the red. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.7 basis points to 2.208 percent.

The ten-year yield more than offset Monday's 1.8 basis point gain, climbing further off the one-year closing low set last Wednesday.

Easing concerns about the global economy contributed to the pullback by treasures, with a report from the Chinese National Bureau of Statistics showing that GDP growth slowed by less than expected in the third quarter.

The report said Chinese GDP grew by 7.3 percent in the third quarter, stronger than the 7.2 percent growth forecast by economists but slower than the 7.5 percent growth in the second quarter.

Additionally, the National Association of Realtors released a report showing a bigger than expected rebound in U.S. existing home sales in the month of September.

NAR said existing home sales climbed 2.4 percent to a seasonally adjusted annual rate of 5.17 million in September after falling 1.8 percent to a rate of 5.05 million in August. Economists had expected existing home sales to rise to a rate of 5.10 million.

With the bigger than expected rebound, existing home sales rose to their highest annual rate since reaching 5.26 million in September of last year.

A rally on Wall Street also weighed on the bond market, with stocks continuing to recover from the sell-off seen in recent weeks.

Economic data is likely to remain in focus on Wednesday, as the Labor Department is scheduled to release its report on consumer price inflation in the month of September.