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Treasuries Extend Recent Pullback Amid Rebound On Wall Street

Treasuries extended the sharp pullback seen over the past few sessions on Friday, pushing the yield on the benchmark ten-year note back toward 1 percent.

Bond prices fluctuated after an early move to the downside but largely remained in negative territory. As a result, the ten-year yield, which moves opposite of its price, jumped by 10.2 basis points to 0.951 percent.

With the increase on the day, the ten-year yield closed higher for the fourth straight session after ending Monday's trading at a record closing low.

The continued weakness among treasuries came as some traders moved their money out of the safe haven of bonds amid a rebound on Wall Street.

Stocks showed a strong move back to the upside on the day as traders went bargain hunting after the Dow suffered its biggest one-day percentage drop since the stock market crash of 1987 on Thursday.

A report from the University of Michigan showing consumer sentiment has held up relatively well in March despite the rampant fear over the coronavirus outbreak also reduced the appeal of bonds.

The report showed the consumer sentiment index slid to 95.9 in March after rising to 101.0 in February, but the index still came in above economist estimates for a reading of 95.0.

"Importantly, the initial response to the pandemic has not generated the type of economic panic among consumers that was present in the runup to the Great Recession," said Surveys of Consumers chief economist Richard Curtin.

He added, "Nonetheless, the data suggest that additional declines in confidence are still likely to occur as the spread of the virus continues to accelerate."

News on the coronavirus front is likely to remain in focus next week, although traders are also likely to keep a close eye on the Federal Reserve's monetary policy decision next Wednesday.

CME Group's FedWatch Tool currently indicates a 69.0 percent chance the Fed will slash rates to zero to 0.25 percent after lowering rates to 1 to 1.25 percent in an emergency rate cut earlier this month.

Reports on retail sales, industrial production, housing starts, and existing home sales are also due to be released next week but may be viewed as old news due to the intensification of the coronavirus outbreak.

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