WASHINGTON (dpa-AFX) - After ending the previous session roughly flat, treasuries showed a modest move to the upside during trading on Tuesday.
Bond prices turned higher in morning trading and remained positive for the rest of the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, dipped by 1.9 basis points to 2.381 percent.
The modest strength among treasuries came as traders looked for safe havens amid a pullback by stocks on Wall Street.
Lingering uncertainty about the outlook for the Republican tax reform proposal weighed on stocks as the House prepares to vote on their bill later this week.
The House bill has significant differences from the Senate version, raising concerns about whether GOP lawmakers will be able to work together to combine the legislation.
Senate Finance Committee Chairman Orrin Hatch, R-Utah, delayed the release of his modified version of the Senate tax reform bill.
On the U.S. economic front, the Labor Department released a report showing producer prices increased by more than anticipated in the month of October.
The Labor Department said its producer price index for final demand climbed by 0.4 percent in October, matching the increase seen in September. Economists had expected prices to inch up by 0.1 percent.
Excluding food and energy prices, core producer prices also rose by 0.4 percent in October after a matching increase in the previous month. Core prices had been expected to rise by 0.2 percent.
Economic data is likely to be in focus on Wednesday, with traders likely to keep a close eye on reports on retail sales, consumer prices, and New York-area manufacturing activity.
Copyright RTT News/dpa-AFX