WASHINGTON (dpa-AFX) - Following the pullback seen during the previous session, treasuries saw some further downside during trading on Tuesday.
Bond prices moved modestly lower early in the day and remained in negative territory throughout the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.2 basis points to 4.221 percent.
With the increase, the ten-year yield continued to regain ground after ending last Friday's trading at its lowest closing level in well over a month.
The continued weakness among treasuries came as traders expressed caution ahead of the release of the Labor Department's closely watched report on consumer price inflation on Wednesday.
The report is expected to show consumer prices rose by 0.2 percent for the fifth straight month in November, while the annual rate of consumer price growth is expected to tick up to 2.7 percent in November from 2.6 percent in October.
Core consumer prices, which exclude food and energy prices, are expected to increase by 0.3 percent for the fourth straight month in November. The annual rate of growth by core consumer prices is expected to remain at 3.3 percent.
While the Federal Reserve is widely expected to lower rates by another 25 basis points next week, the data could impact the outlook for future rate cuts by the central bank.
CME Group's FedWatch Tool is currently indicating an 86.1 percent chance the Fed will lower rates by a quarter point next week but a 69.1 percent chance the central bank will then leave rates unchanged in late January.
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