WASHINGTON (dpa-AFX) - Treasuries showed a notable move to the upside during trading on Tuesday, regaining ground after trending lower over the past several sessions.
Bond prices advanced early in the session and remained firmly positive throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, slid 6.7 basis points to 3.844 percent.
The ten-year yield had closed for five consecutive sessions, ending last Friday's trading at its highest closing level in two weeks.
The rebound by treasuries came amid renewed concerns about the economic after the Institute for Supply Management released a report showing a continued contraction by U.S. manufacturing activity in the month of August.
The ISM said its manufacturing PMI inched up to 47.2 in August from 46.8 in July, but a reading below 50 still indicates contraction. Economists had expected the index to rise to 47.5.
'Manufacturing employment shrank for the third consecutive month as manufacturing activity slowed in recent months,' said Jeffrey Roach, Chief Economist for LPL Financial.
He added, 'Although the manufacturing sector holds a smaller portion of the macro economy now than in previous cycles, investors should still position themselves for a broader slowdown throughout the balance of this year.'
A separate report released by the Commerce Department unexpectedly showed a modest decrease by U.S. construction spending in the month of July.
Monthly jobs data will be in focus later this week, with economists currently expecting employment to climb by 165,000 jobs in August after rising by 114,000 jobs in July.
The unemployment rate is expected to edge down to 4.2 percent in August after rising to 4.3 percent in July, reaching its highest level since October 2021.
Reports on the U.S. trade deficit, factory orders and job openings may attract attention on Wednesday along with the Fed's Beige Book.
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