Treasuries Pull Back Further On Japanese Stimulus News

(RTTNews) - Following the pullback seen in the previous session, treasuries saw some further downside during trading on Tuesday.

Bond prices came under pressure in early trading but regained some ground as the day progressed. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, climbed by 4.1 basis points to 1.537 percent.

The early weakness among treasuries was partly due to news that Japanese Prime Minister Shinzo Abe's cabinet approved an economic stimulus package worth more than 28 trillion yen.

The stimulus package, which was outlined by Abe in a speech last Wednesday, includes 13.5 trillion yen in fiscal measures.

However, traders seemed somewhat reluctant to make more significant moves ahead of some key events later this week.

The Bank of England's monetary policy decision on Thursday is likely to be in focus along with the monthly U.S. jobs report due on Friday.

Meanwhile, traders largely shrugged off a Commerce Department report showing that personal spending increased by slightly more than expected in the month of June.

The report said personal spending climbed by 0.4 percent in June, matching the increase seen in May. Spending had been expected to rise by about 0.3 percent.

The Commerce Department also said personal income edged up by 0.2 percent for the second straight month, while economists had expected income to increase by 0.3 percent.

Reports on private sector employment and service sector activity may attract attention on Wednesday, although trading activity may remain somewhat subdued.