Treasuries Recover From Early Weakness To Close Moderately Higher

(RTTNews) - After coming under pressure early in the session, treasuries showed a notable turnaround over the course of the trading day on Tuesday.

Bond prices climbed well off their early lows to end the day moderately higher. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, dipped 3.0 basis points to 4.513 percent after reaching a high of 4.598 percent.

The rebound by treasuries came after the Labor Department released a report showing job openings in the U.S. fell by much more than expected in the month of December.

The report said job openings tumbled to 7.6 million in December after climbing to an upwardly revised 8.2 million in November.

Economists had expected job openings to dip to 8.0 million from the 8.1 million originally reported for the previous month.

The data led to some optimism about the outlook for interest rates ahead of the release of the Labor Department's more closely watched monthly jobs report on Friday.

Early in the session, easing concerns about a global trade war weighed on treasuries after President Donald Trump agreed to pause 25 percent tariffs on imports from Mexico and Canada for a month.

Trading activity on Wednesday may be impacted by reaction to reports on the U.S. trade deficit, private sector employment and service sector activity.