Treasuries Rebound Amid Steep Drop In Oil Prices

(RTTNews) - Following the weakness seen in the previous session, treasuries moved back to the upside during trading on Tuesday.

Bond prices moved steadily higher for much of the day before closing firmly in positive territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, dropped 3.7 basis points to 2.153 percent.

The rebound by treasuries was partly due to a steep drop by the price of crude oil, which contributed to a pullback on Wall Street.

Crude for July delivery tumbled $0.97 to $43.23 a barrel, the lowest closing level for a front-month contract since last September.

The drop pulled crude oil into bear territory amid concerns about oversupply following indications of rising production in Nigeria and Libya.

Energy stocks moved lower along with the price of crude oil, helping to pull the Dow and the S&P 500 down off yesterday's record closing highs.

Following a couple of quiet days on the U.S. economic front, trading on Wednesday may be impacted by reaction to a report on existing home sales in the month of May.