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Treasuries Close Roughly Flat Following Lackluster Session

Treasuries showed a lack of direction over the course of the trading session on Tuesday before ending the day roughly flat.

Bond prices moved higher early in the session but bounced back and forth across the unchanged line as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its prices, edged down by less than a basis point to 2.877 percent.

The choppy trading on the day was partly attributed to concerns about President Donald Trump's top economic advisor Gary Cohn leaving the White House.

A report from Bloomberg News said Trump believes Cohn will resign if planned tariffs on steel and aluminum imports are implemented.

Cohn has reportedly been summoning executives from U.S. companies that depend on the metals to meet with Trump this week to try to blunt or halt the tariffs.

The strength seen early in the day came amid easing geopolitical concerns following reports that North Korea is willing to talk about denuclearization.

South Korea's national security director Chung Eui-yong told reporters North Korea would be willing to denuclearize if its security was guaranteed.

"North Korea made clear its willingness to denuclearize the Korean peninsula and the fact there is no reason for it to have a nuclear program if military threats against the North are resolved and its regime is secure," Chung said.

On the U.S. economic front, the Commerce Department released a report showing a slightly bigger than expected decrease in factory orders in the month of January.

The Commerce Department said factory orders tumbled by 1.4 percent in January after jumping by an upwardly revised 1.8 percent in December.

Economists had expected factory orders to drop by 1.3 percent compared to the 1.7 percent spike originally reported for the previous month.

Trading on Wednesday may be impacted by reaction to reports on private sector employment, international trade and labor productivity.

The Federal Reserve is also due to release its Beige Book, a compilation of anecdotal evidence on economic conditions in the twelve Fed districts, which may shed light on the outlook for interest rates.

by RTTNews Staff Writer

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