Treasuries saw moderate strength during trading on Tuesday, extending the upward move that was seen over the course of the previous sessions.
After moving notably higher in early trading, bond prices gave back some ground but still closed in positive territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.6 basis points to 1.812 percent.
With the drop on the day, the ten-year yield added to the loss posted on Monday, pulling back further off the four-month closing high set last Friday.
The continued strength among treasuries reflected lingering uncertainty about the effectiveness of the Federal Reserve's recently announced third round of quantitative easing.
Meanwhile, traders largely shrugged off a report from the National Association of Home Builders showing that homebuilder confidence improved for the fifth consecutive month in September and reached a six-year high.
The report showed that the NAHB/Wells Fargo Housing Market Index rose to 40 in September from 37 in August. Economists had been expecting the index to show a more modest increase to a reading of 38.
With the much bigger than expected increase, the index rose to its highest level since coming in at 42 in June of 2006.
Additional housing data is due to be released on Wednesday, with the Commerce Department scheduled to release its report on new residential construction and the National Association of Realtors due to release its report on existing home sales.
by RTT Staff Writer
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