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 early in the day and remained firmly positive throughout the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of it price, slid by 4.8 basis points to 0.515 percent.
The ten-year yield more than offset the increase seen in the previous session, ending the day at its lowest closing level in nearly five months.
Treasuries benefited from uncertainty about the prospects for a new coronavirus relief bill, as negotiators struggle to reach an agreement even as new cases continue to spike and enhanced unemployment benefits expired last week.
Democrats and Trump administration officials said they made progress towards a deal during a meeting on Monday, but House Speaker Nancy Pelosi, D-Calif., noted the two sides 'still have our differences.'
The amount of the federal unemployment benefit remains a key sticking point, as Republicans want to slash the benefit to $200 per week and Democrats want to keep the benefit at $600 per week.
A disagreement over funding for state and local governments is also holding up a deal, with President Donald Trump accusing Democrats of seeking to bail out poorly run Democratic-run states and cities.
Meanwhile, traders largely shrugged off a Commerce Department report showing another substantial increase in new orders for manufactured goods in the month of June.
The Commerce Department said factory orders soared by 6.2 percent in June after skyrocketing by a revised 7.7 percent in May.
Economists had expected factory orders to jump by 5.0 percent compared to the 8.0 percent spike originally reported for the previous month.
The latest economic news may attract more attention on Wednesday, with traders likely to keep an eye on reports on private sector employment, the U.S. trade deficit and service sector activity.
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