Treasuries Pull Back Further Off Recent Highs

(RTTNews) - Following the sharp pullback seen last Friday, treasuries saw some further downside over the course of the trading session on Tuesday.

Bond prices came under pressure in early trading and remained stuck in the red throughout the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 3 basis points to 1.778 percent.

With the increase on the day, the ten-year yield added to the 10.4 basis point jump seen last Friday, climbing further off its lowest closing level in a year.

The continued pullback by treasuries came amid a rally by stocks on Wall Street, which extended the rebound seen in the previous session.

Stocks continued to benefit from bargain hunting, as the major averages remained at relatively low levels even after last Friday's gains.

Meanwhile, bond traders largely shrugged off a report from the New York Federal Reserve showing that business activity for New York manufacturers has continued to decline in the month of February.

The New York Fed said its general business conditions index climbed to a negative 16.6 in February from a negative 19.4 in January, but a negative reading continues to indicate a contraction in regional manufacturing activity.

A separate report from the National Association of Home Builders showed an unexpected deterioration in homebuilder confidence in the month of February.

The report said the NAHB/Wells Fargo Housing Market Index dropped to 58 in February from an upwardly revised 61 in January.

The decrease came as a surprise to economists, who had expected the housing market index to inch up to 61 from the 60 originally reported for the previous month.

Trading on Wednesday may be impacted by reports on housing starts, producer prices, and industrial production as well as the minutes of the Federal Reserve's latest monetary policy meeting.