Treasuries Rally Amid Concerns About Italy

(RTTNews) - Treasuries showed a substantial move to the upside during trading on Tuesday, extending the upward trend seen in recent sessions.

Bond prices moved higher early in the session and saw further upside as the day progressed. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, tumbled by 16.3 basis points to 2.768 percent.

The rally by treasuries came amid a sell-off on Wall Street amid concerns about recent political developments in Italy.

Italy's president has appointed a former International Monetary Fund official as interim prime minister with the task of planning for snap polls and passing the next budget after weeks of uncertainty.

On Wednesday, trading may be impacted by reaction to a report on private sector employment as well as the Federal Reserve's Beige Book.