Treasuries Show Notable Move Back To The Downside

Trading 27 fév 2019 Donner votre avis

Treasuries showed a notable move to the downside during trading on Wednesday, more than offsetting the strength seen in the previous session.

Bond prices came under pressure early in the session and remained firmly negative throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, advanced by 5.7 basis points to 2.693 percent.

The pullback extended the recent see-saw performance by treasuries, with the ten-year yield stuck in a narrow range throughout the month of February.

On the U.S. economic front, the National Association of Realtors released a report showing pending home sales rebounded by much more than anticipated in the month of January.

NAR said its pending home sales index spiked by 4.6 percent to 103.2 in January after tumbling by 2.3 percent to a downwardly revised 98.7 in December. Economists had expected pending home sales to rise by 0.4 percent.

A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale.

Meanwhile, a government shutdown-delayed report released by the Commerce Department showed new orders for manufactured goods rose by much less than anticipated in the month of December.

The Commerce Department said factory orders inched up by 0.1 percent in December after falling by a revised 0.5 percent in November. Economists had expected orders to climb by 0.5 percent.

Traders also kept an eye on President Donald Trump's second summit with North Korean leader Kim Jong Un, looking for more concrete signs of progress toward the denuclearization of the Korean peninsula.

"Kim Jong Un and I will try very hard to work something out on Denuclearization & then making North Korea an Economic Powerhouse," Trump said on Twitter this morning. "I believe that China, Russia, Japan & South Korea will be very helpful!"

News out of the Trump-Kim summit may impact trading on Thursday along with reports on weekly jobless claims, fourth quarter GDP, and Chicago-area business activity.


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