WASHINGTON (dpa-AFX) - Following the pullback seen in the previous session, treasuries showed a strong move back to the upside during trading on Tuesday.
Bond prices moved notably higher over the course of morning trading and remained firmly positive throughout the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, slid 5.6 basis points to 1.976 percent.
With the decrease on the day, the ten-year yield ended the session at its lowest closing level since Election Day of 2016.
The rebound by treasuries came amid renewed trade concerns after the U.S. proposed new tariffs on more European goods as part of an ongoing dispute over aircraft subsidies.
The U.S. Trade Representative issued a supplemental list of approximately $4 billion worth of products that could potentially be subject to additional duties.
In response to public comments and additional analysis, the USTR is adding the supplemental list to an initial list of $21 billion worth of products published on April 12.
The threat of additional tariffs comes as the U.S. and the European Union have been engaged in a long-running World Trade Organization dispute regarding EU aircraft subsidies.
While the U.S. and China have agreed to restart stalled trade talks, the news is a reminder that President Donald Trump is fighting a trade war on multiple fronts.
Following a quiet day on the U.S. economic front, a slew of data is scheduled to be released on Wednesday, including reports on private sector employment, the U.S. trade deficit, and service sector activity.
The Treasury Department is also due to announce the details of this month's auctions of three-year and ten-year notes and thirty-year bonds.
Trading activity may wane as the day progresses, however, as some traders will be looking to get a head start on the Independence Day holiday on Thursday.
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