WASHINGTON (dpa-AFX) - After showing a lack of direction early in the session, treasuries moved notably higher over the course of the trading day on Wednesday.
Bond prices climbed firmly into positive territory in afternoon trading after spending the morning lingering near the unchanged line. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, slid 4.9 basis points to 4.249 percent.
The ten-year yield closed lower for the sixth consecutive session, ending the day at its lowest closing level since early December.
The strength that emerged among treasuries came amid renewed concerns about President Donald Trump's trade policies.
During the first official Cabinet meeting of his new administration, Trump reiterated he is 'not stopping' previously delayed tariffs on Canada and Mexico.
While a 30-day pause on those tariffs is set to expire on March, Trump indicates the tariffs would take effect on April 2nd, the same day he purportedly plans to announce reciprocal tariffs on other U.S. trade partners.
In U.S. economic news, the Commerce Department released a report showing a substantial pullback by new home sales in the U.S. in the month of January.
The Commerce Department said new home sales plunged by 10.5 percent to an annual rate of 657,000 in January after spiking by 8.1 percent to an upwardly revised rate of 734,000 in December.
Economists had expected new home sales to slump by 2.6 percent to an annual rate of 680,000 from the 698,000 originally reported for the previous month.
Trading on Thursday may be impacted by reaction to reports on weekly jobless claims, durable goods orders and pending home sales, although trading activity may be somewhat subdued ahead of the release of the Federal Reserve's preferred inflation readings on Friday.
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