After moving sharply higher over the course of the previous session, treasuries gave back some ground on Tuesday on the heels of upbeat factory orders data.
Bond prices moved moderately lower over the course of the abbreviated session, closing firmly in the red. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 4.8 basis points to 1.628 percent.
The pullback by treasuries was partly due to the release of a report from the Commerce Department showing a bigger than expected increase in factory orders in the month of May.
The report showed that factory orders rose by 0.7 percent in May following two consecutive monthly decreases. Economists had expected orders to edge up by 0.1 percent.
With the stronger than expected growth, the report eased some of the concerns raised by Monday's report from the Institute for Supply Management showing a contraction in manufacturing activity.
Nonetheless, trading activity remained relatively subdued, with traders looking to get a head start on the Independence Day holiday on Wednesday.
Following the holiday, trading activity may pick up on Thursday amid monetary policy announcements from the European Central Bank and the Bank of England.
Traders are also likely to keep an eye on reports on private sector employment, weekly jobless claims, and service sector activity.
by RTT Staff Writer
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