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Treasuries Close Moderately Higher Amid Trump Cabinet Shuffle

Treasuries showed a lack of direction in early trading but moved higher over the course of the trading session on Tuesday.

Bond prices moved higher going into the close. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.2 basis points to 2.848 percent.

The advance by treasuries came amid renewed geo-political concerns after President Donald Trump fired Secretary of State Rex Tillerson.

"Mike Pompeo, Director of the CIA, will become our new Secretary of State. He will do a fantastic job! Thank you to Rex Tillerson for his service!" Trump tweeted.

The tweet from Trump came shortly after a report from the Washington Post indicated the president's intention to oust Tillerson.

A statement from Under Secretary of State for Public Diplomacy and Public Affairs Steve Goldstein suggested that Tillerson was blindsided by the news.

Traders largely shrugged off a report from the Labor Department showing a modest increase in consumer prices in the month of February.

The Labor Department said its consumer price index rose by 0.2 percent in February after climbing by 0.5 percent in January. Economists had expected consumer prices to rise by 0.2 percent.

Core consumer prices, which exclude food and energy prices, also edged up by 0.2 percent in February following a 0.3 percent increase in January. The uptick in core prices also matched expectations.

Trading on Wednesday may be impacted by reports on producer prices, retail sales and business inventories.

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