Treasuries Move Sharply Higher Following Sluggish Economic Data

(RTTNews) - Treasuries moved sharply higher over the course of the trading day on Wednesday, adding to the modest gains posted in the previous session.

Bond prices climbed firmly into positive territory in early trading and saw further upside as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, tumbled by 13.0 basis points to 4.198 percent.

The ten-year yield added to the 1.4 basis point dip seen on Tuesday, pulling back further off its highest levels in fifteen years.

The rally by treasuries came following the release of some disappointing U.S. economic data, which helped ease recent concerns about the outlook for interest rates.

S&P Global released data showing a slowdown in the pace of growth in service sector activity in the month of August as well as a contraction in manufacturing activity during the month.

Meanwhile, traders shrugged off a Commerce Department report showing new home sales rebounded by much more than expected in the month of July.

Traders also continued to look ahead to the highly anticipated economic symposium in Jackson Hole, Wyoming, which kicks off on Thursday.

The symposium will feature meetings by global central bank leaders as well as a speech by Federal Reserve Chair Jerome Powell that could impact the outlook for interest rates.

Reports on durable goods orders and initial jobless claims are likely to attract attention on Thursday, although trading activity may be somewhat subdued as the Jackson Hole summit gets underway later in the day.