WASHINGTON (dpa-AFX) - After ending the previous session little changed, treasuries showed a modest move to the upside during trading on Tuesday.
Bond prices moved notably higher in morning trading but gave back ground in the afternoon. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, dipped by 1.3 basis points to 0.607 percent.
The uptick by treasuries came even though European Union leaders agreed on a package of measures to tackle the exceptional nature of the economic and social situation posed by the coronavirus pandemic.
After four days of talks in Brussels, EU leaders agreed to the package worth 750 billion euros. Accordingly, the bloc will jointly issue debt that will be provided to member nations hit hardest by Covid-19.
Out of the 750 billion euro recovery plan, 390 billion euros will be in the form of grants and 360 billion euros of low interest rate loans. Now the deal needs to be approved by the parliaments of the 27 member states.
Nonetheless, a lack of major U.S. economic data kept some traders on the sidelines, leading to relatively light trading activity.
After two quiet days on the economic front, trading on Wednesday may be impacted by reaction to a report on existing home sales in June.
Bond traders are also likely to keep an eye on the results of the Treasury Department's auction of $17 billion worth of twenty-year bonds.
Copyright RTT News/dpa-AFX