Following the rebound seen in the previous session, treasuries moved back to the downside during the trading day on Tuesday.
Bond prices regained ground after an initial drop but remained in negative territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.8 basis points to 1.105 percent.
The pullback by treasuries came as traders kept an eye on developments on Wall Street, where stocks that recently benefited from the retail trading frenzy moved sharply lower.
Video game retailer GameStop (GME), which is seen as the poster child for the so-called “retail investor revolt,” has plummeted by 56.2 percent after plunging by more than 30 percent on Monday.
Shares of AMC Entertainment (AMC) are also tumbling by 41 percent after the movie theater chain ended the previous session modestly higher.
Continued optimism about more fiscal stimulus also reduced the appeal of treasuries after President Joe Biden met with a group of ten Republican Senators who have offered a counterproposal to his $1.9 trillion relief plan.
Senator Susan Collins, R-Maine, called the meeting “very productive” and said the two sides plan to continue negotiations.
A White House statement also described the meeting as “productive” but noted that Democrats could still use the reconciliation process to pass a relief bill without Republican support.
Following a quiet day on the U.S. economic front, trading on Wednesday may be impacted by reaction to reports on private sector employment and service sector activity.
Source: Read Full Article