Treasuries Move To The Downside Amid Rally On Wall Street

(RTTNews) - Treasuries showed a notable move to the downside during trading on Tuesday, extending the drop seen in the previous session.

Bond prices saw some early volatility but finished the session firmly in negative territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 5.9 basis points to 3.019 percent.

The weakness among treasuries came amid a rally on Wall Street, with stocks showed a strong move back to the upside following the significant downturn seen over the course of the previous session.

The rebound on Wall Street came as traders made another attempt at bargain hunting after the rally seen in early trading on Monday faded as the day progressed.

Optimism about upcoming earnings news was also cited as a reason for the rally, with a majority of the S&P 500 companies beating expectations so far this season.

Meanwhile, traders largely shrugged off a report from the Commerce Department unexpectedly showing a continued decline in housing starts in the month of June.

The Commerce Department said housing starts slumped by 2.0 percent to an annual rate of 1.559 million after plunging by 11.9 percent to a revised rate of 1.591 million in May.

The continued decrease came as a surprise to economists, who had expected housing starts to jump by 2.3 percent to an annual rate of 1.585 million from the 1.549 million originally reported for the previous month.

With the unexpected decrease, housing starts dropped to the lowest annual rate since hitting 1.505 million in April of 2021.

The report showed building permits also fell by 0.6 percent to an annual rate of 1.685 million in June after tumbling by 7.0 percent to a rate of 1.695 million in May.

Building permits, an indicator of future housing demand, were expected to slump by 2.7 percent to an annual rate of 1.650 million.

More housing data is scheduled to be released on Wednesday, with the National Association of Realtors due to release its report on existing home sales in the month of June.

Bond traders are also likely to keep an eye on the results of the Treasury Department's auction of $14 billion worth of twenty-year bonds.