Treasuries Recover From Early Weakness But Still Close Lower

Treasuries recovered from initial weakness but moved back to the downside over the course of the trading session on Tuesday.

Bond prices moved roughly sideways going into the close, ending the day in negative territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.4 basis points to 3.535 percent.

The lower close by treasuries may have reflected lingering concerns about the outlook for interest rates ahead of the release of some key U.S. economic data in the coming days.

On the U.S economic front, the New York Federal Reserve released a report showing a significant contraction in regional manufacturing activity in the month of January.

The New York Fed said its general business conditions plunged to a negative 32.9 in January from a negative 11.2 in December, with a negative reading indicating a contraction. Economists had expected the index to climb to a negative 4.5.

Trading on Wednesday may be impacted by reaction to a slew of U.S. economic data, including reports on producer prices, retail sales and industrial production.