Treasuries Close Moderately Higher On Chinese Trade Data

(RTTNews) - Following the Columbus Day holiday on Monday, treasuries moved moderately higher over the course of the trading day on Tuesday.

Bond prices pulled back after failing to sustain an initial upward move but moved back to the upside as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 3.5 basis points to 2.055 percent.

The strength among treasuries was partly due to lingering concerns about the outlook for the global economy following the release of disappointing Chinese trade data.

A report released by China's General Administration of Customs showed that exports fell 3.7 percent year-over-year in the month of September.

While the decrease in exports was smaller than expected, the report also showed a steep 20.4 percent year-over-year drop in imports, which fell for the 11th straight month.

Buying interest was somewhat subdued, however, as a lack of major U.S. economic data kept some traders on the sidelines.

Reports on retail sales and producer prices are likely to be in focus on Wednesday along with the Federal Reserve's Beige Book.