Treasuries showed a strong move to the upside over the course of the trading day on Wednesday, climbing further off their recent lows.
After moving to the upside in early trading, bond prices moved steadily higher as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 7.8 basis points to 2.294 percent.
With the notable drop on the day, the ten-year yield pulled back further off the four-month closing high that it set on Monday.
The strength among treasuries came as some traders looked to pick up bonds at reduced levels following the substantial weakness seen over the past few sessions.
Buying interest may also have been generated by the release of a report from the National Association of Realtors showing an unexpected drop in existing home sales in the month of February.
NAR said existing home sales slipped 0.9 percent to a seasonally adjusted annual rate of 4.59 million in February from an upwardly revised 4.63 million in January. Economists had expected existing home sales to edge up to 4.61 million from the 4.57 million that had been reported for the previous month.
The modest drop in existing home sales in February came after sales surged up by an upwardly revised 5.7 percent in January. The revised figure for January represents the highest level since May of 2010.
Trading on Thursday could be impacted by reaction to the Labor Department's report on weekly jobless claims. The Conference Board is also due to release its leading economic indicators report.
by RTT Staff Writer
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