Treasuries Move Back To The Downside Amid Lingering Rate Worries

(RTTNews) - Treasuries moved to the back downside during trading on Wednesday, offsetting the upward move seen over the course of the previous session.

Bond prices came under pressure early in the session and remained firmly negative throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 5.4 basis points to 4.652 percent.

The pullback by treasuries came amid ongoing concerns about the outlook for interest rates ahead of next week's Federal Reserve meeting.

While the Fed is widely expected to leave interest rates unchanged, traders will be looking for clues about the possibility of future rate cuts.

Later this week, the Commerce Department is due to release a report on personal income and spending that includes readings on inflation said to be preferred by the Fed.

On the U.S. economic front, the Commerce Department released a report showing new orders for U.S. manufactured durable goods surged by more than expected in the month of March.

The report said durable goods orders soared by 2.6 percent in March after climbing by a downwardly revised 0.7 percent in February.

Economists had expected durable goods orders to spike by 2.3 percent compared to the 1.3 percent jump that had been reported for the previous month.

Excluding a surge in orders for transportation equipment, durable goods orders crept up by 0.2 percent in March after inching up by 0.1 percent in February. Ex-transportation orders were expected to rise by 0.3 percent.

Looking ahead, trading on Thursday may be impacted by reaction to reports on first quarter GDP, weekly jobless claims and pending home sales.