Following a rather uneventful session that closed at near-par levels yesterday, U.S. Treasuries displayed a moderate gain throughout Tuesday's trading.
Throughout the session, bond prices rebounded from initial setbacks, eventually showing a modest increase. Consequently, the yield on the benchmark ten-year Treasury note, which inversely correlates with its price, experienced a slight decline of 1.2 basis points, settling at 4.385 percent.
This slight decrease in the ten-year yield built on the fractional drop noted during Monday's trading, as it continued to retreat following last week's upward trend spanning five consecutive sessions.
The minor uptick in treasuries occurred as market participants focused on the much-anticipated Federal Reserve's monetary policy announcement scheduled for Wednesday.
While the general consensus is that the Fed will implement another quarter-point rate cut, traders are poised to scrutinize the accompanying statement and officials' updated economic projections, particularly regarding future rate expectations.
Recent data highlighting persistent inflation has prompted concerns that the Fed might slow down its rate reduction pace more than previously anticipated for the upcoming year.
Nonetheless, bond traders largely dismissed a report from the Commerce Department indicating stronger-than-expected retail sales growth in November.
Wednesday's trading is expected to be predominantly influenced by reactions to the Fed's policy decision and the newly released economic forecasts.
The material has been provided by InstaForex Company -
www.instaforex.com
