Treasuries Regain Ground Following Recent Weakness

(RTTNews) - After moving sharply lower over the past few sessions, treasuries regained some ground during trading on Wednesday.

Bond prices moved to the upside in morning trading and remained in positive territory throughout the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 4.5 basis points to 1.689 percent.

With the decrease on the day, the ten-year yield pulled back after ending Tuesday's trading at its highest closing level in well over two months.

The rebound by treasuries was partly due to bargain hunting following the notable weakness seen over the past week.

Traders may also have looked to the relative safety of bonds ahead of the release of a slew of U.S. economic data on Thursday.

Reports on weekly jobless claims, producer prices, retail sales, industrial production, and regional manufacturing activity could all impact tomorrow's trading.

Meanwhile, traders also continue to look ahead to the Federal Reserve's monetary policy announcement scheduled for next week.

The Fed is scheduled to hold a two-day meeting starting next Tuesday and announce its policy decision next Wednesday afternoon.

The central bank is also due to reveal its updated economic forecasts followed by a press conference by Fed Chair Janet Yellen.