Treasuries turned higher over the course of the trading day on Tuesday, recovering from a notable move to the downside in early trading.
After coming under pressure in early trading, bond prices showed a significant turnaround as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, ended the day down by 2.1 basis points at 1.944 percent.
Before pulling back into negative territory, the ten-year yield reached a high of 1.998 percent, climbing back near the 2 percent level for the first time in two months.
The early weakness among treasuries was partly due to anxiety ahead of remarks by Federal Reserve Chairman Ben Bernanke, who is due to testify before the Joint Economic Committee of Congress on Wednesday.
Bernanke's remarks could have a big impact on expectations regarding the Fed's plans to slow the pace of its asset purchase program.
However, treasuries rebounded due in part to comments from other Fed officials easing concerns that the central bank may taper its asset purchase program sooner than anticipated.
In a speech in Frankfurt, St. Louis Fed President James Bullard said quantitative easing has been the most reliable tool while interest rates have been near zero and said the Fed should continue with the program.
Bullard still noted that the rate of purchases should be adjusted appropriately in view of incoming data on both real economic performance and inflation.
New York Fed President William Dudley delivered a separate speech in New York indicating that the central bank should be prepared to adjust the pace of purchases up or down as the labor market and inflation outlook changes.
While Bernanke's remarks are likely to be in the spotlight on Wednesday, traders will also be presented with a report on existing home sales as well as the minutes of the latest Fed meeting.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.