After moving higher over the course of two previous sessions, treasuries saw some further upside during trading on Wednesday.
Bond prices showed a strong upward move in early trading and managed to remain firmly positive throughout the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 3 basis points to 1.782 percent.
With the drop, the ten-year yield closed lower for the third consecutive session, pulling back further off the four-month closing high that it set last Friday.
The continued strength on the day helped treasuries to further offset the weakness that was seen following the Federal Reserve's announcement of further quantitative easing.
Lingering concerns about the U.S. economic outlook have helped to lift treasuries well off their recent lows, although buying interest has remained relatively subdued.
On the U.S. economic front, the Commerce Department released a report showing that housing starts rebounded in August but still came in below economist estimates.
The Commerce Department said housing starts rose 2.3 percent to an annual rate of 750,000 in August from the revised July estimate of 733,000. Economists had expected starts to climb to 768,000 from the 746,000 originally reported for the previous month.
Building permits, an indicator of future housing demand, fell 1.0 percent to an annual rate of 803,000 in August from 811,000 in July.
A separate report from the National Association of Realtors showed that existing home sales jumped by more than expected in August, reaching their highest level since May of 2010.
NAR said existing home sales jumped 7.8 percent to an annual rate of 4.82 million in August from 4.47 million in July. Economists had expected existing home sales to climb to an annual rate of 4.55 million.
Trading on Thursday could be impacted by the release of some additional economic data, including reports on weekly jobless claims, leading economic indicators and Philadelphia-area manufacturing.
by RTT Staff Writer
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