Treasuries Close Modestly Lower After Seeing Early Strength

(RTTNews) - Treasuries turned lower over the course of the trading session on Tuesday after initially moving back to the upside.

Bond prices pulled back well off their early highs and eventually ended the day modestly lower. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by 1.2 basis points to 1.935 percent after hitting a low of 1.884 percent.

The pullback shown by treasuries on the day was attributed to remarks by Chicago Federal Reserve President Charles Evans.

In a speech to the City Club of Chicago, Evans said he sees strong economic growth and said the U.S. is close to achieving the Fed's employment mandate.

Evans said he agrees with the central bank's new media projection for interest rates at year's end, which would reflect two rate hikes.

Treasuries initially benefited from renewed geopolitical concerns following news of a terrorist attack in the Belgian capital of Brussels.

The terrorist group known as ISIS has reportedly claimed responsibility for the attacks, which killed at least 31 people and wounded more than 100 others.

Two explosions occurred at the Zaventem airport just outside the city and were followed by an explosion at a downtown subway station near the European quarter.

Responding to the news, President Barack Obama said the deadly attacks are a reminder that the world must unite to defeat the scourge of terrorism.

Trading on Wednesday may be impacted by the Commerce Department's report on new home sales in the month of February.

New home sales are expected to rise to an annual rate of 510,000 in February after tumbling to a rate of 494,000 in January.