WASHINGTON (dpa-AFX) - After trending lower over the past few sessions, treasuries regained some ground over the course of the trading day on Tuesday.
Bond prices advanced early in the day and saw some further upside in the latter part of the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 3.9 basis points to 4.302 percent.
The rebound by treasuries came as traders look ahead to some key economic events later in the week, including the release of the minutes of the Federal Reserve's latest monetary policy meeting on Wednesday and the Jackson Hole Economic Symposium that gets underway on Thursday.
Federal Reserve Chair Jerome Powell is scheduled to speak at the symposium on Friday, with his remarks potentially impacting the outlook for interest rates.
According to CME Group's FedWatch Tool, there is an 84.9 percent chance the Fed will lower interest rates by a quarter point at its next monetary policy meeting in September.
Reports on weekly jobless claims, existing home sales and leading economic indicators may also attract some attention in the coming days.
On the U.S. economic front, the Commerce Department released a report this morning unexpectedly showing a sharp increase by new residential construction in the U.S. in the month of July.
The Commerce Department said housing starts surged by 5.2 percent to an annual rate of 1.428 million in July after spiking by 5.9 percent to an upwardly revised rate of 1.358 million in June.
Economists had expected housing starts to slump by 2.4 percent to an annual rate of 1.290 million from the 1.321 million originally reported for the previous month.
Meanwhile, the report said building permits tumbled by 2.8 percent to an annual rate of 1.354 million in July after edging down by 0.1 percent to a downwardly revised rate of 1.393 million in June.
Building permits, an indicator of future housing demand, were expected to fall by 0.5 percent to an annual rate of 1.390 million from the 1.397 million originally reported for the previous month.
Early activity on Wednesday may be somewhat subdued as traders look ahead to the release of the Fed minutes later in the afternoon.
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