Treasuries Regain Ground Following Recent Pullback

(RTTNews) - Following the pullback seen over the three previous sessions, treasuries showed a modest move back to the upside during trading on Tuesday.

Bond prices moved higher early in the day and remained in positive territory throughout the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, dipped 2.3 basis points to 4.414 percent.

The rebound by treasuries may have reflected bargain hunting, with traders picking up bonds at somewhat reduced levels amid continued optimism about the outlook for interest rates.

While recent comments from some Federal Reserve officials have partly offset confidence in a near-term rate cut, CME Group's FedWatch Tool showed the chances rates will be lower by September remains at a relatively high 78.3 percent.

Nonetheless, another quiet day on the U.S. economic front kepts some traders on the sidelines ahead of the release of the minutes of the Fed's latest monetary policy meeting on Wednesday.

The minutes of the April 30-May 1 meeting may shed additional light on Fed officials' thinking with regard to the outlook for rates.