Treasuries Move Notably Higher, Pushing Yields To Record Lows

(RTTNews) - Treasuries showed a substantial move to the upside during trading on Tuesday, pushing yields down to new record lows.

Bond prices moved notably higher in morning trading before moving roughly sideways in the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, tumbled by 8.9 basis points to 1.367 percent.

With the steep drop on the day, the ten-year yield extended a recent downward trend, falling to a record closing low.

The strength among treasuries came as they benefited from their appeal as a safe haven amid renewed concerns about the impact of Britain's vote to leave the European Union.

Worries about the so-called Brexit weighed on stocks around the world and pulled the British pound down to its lowest level versus the U.S. dollar in over thirty years.

On the U.S. economic front, the Commerce Department released a report this morning showing that new orders for U.S. manufactured goods pulled back in line with economist estimates in May.

The report said factory orders fell by 1.0 percent in May following a 1.8 percent jump in April. The drop in orders matched economist estimates.

Trading on Wednesday may be impacted by reports on international trade and service sector activity as well as the minutes of the latest Federal Reserve meeting.