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Treasuries Show Significant Move Back To The Downside

After recovering from an early move to the downside in the previous session, treasuries came under pressure once again during trading on Tuesday.

Bond prices moved significantly lower early in the day and this time remained firmly negative throughout the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 8.3 basis points to 1.603 percent.

The notable weakness among treasuries came as traders moved money into riskier assets like stocks amid optimism about further Chinese stimulus.

Traders seem to expect China to announce additional steps to boost the economy amid the fallout from the coronavirus outbreak.

The coronavirus has now claimed 425 lives and infected more than 20,000 people in mainland China, with efforts to contain the outbreak expected to stifle the Chinese economy.

In U.S. economic news, the Commerce Department released a report showing new orders for U.S. manufactured goods spiked by more than anticipated in the month of December.

The Commerce Department said factory orders surged up by 1.8 percent in December after tumbling by a revised 1.2 percent in November.

Economists had expected factory orders to jump by 1.2 percent compared to the 0.7 percent decrease originally reported for the previous month.

Trading on Wednesday may be impacted by reaction to some key U.S. economic news, including reports on private sector employment, the trade deficit, and service sector activity.

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