Treasuries Move Sharply Higher Amid Sell-Off On Wall Street

Treasuries moved sharply higher over the course of the trading session on Tuesday, extending the advance seen in the previous session.

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 11.9 basis points to 3.396 percent.

The ten-year yield continued to give back ground after ending last Wednesday’s trading at its highest closing level in almost a month.

Treasuries continued to benefit from their appeal as a safe haven amid a sell-off by stocks on Wall Street, which fell sharply after showing a lack of direction over the two previous sessions.

The weakness on Wall Street partly reflected a negative reaction to quarterly results from First Republic (FRC), which reported a loss of more than $100 billion in deposits in the first quarter, renewing concerns about turmoil in the banking sector.

On the U.S. economic front, the Conference Board released a report showing consumer confidence has deteriorated by much more than anticipated in the month of April.

The Conference Board said its consumer confidence index slumped to 101.3 in April from a revised 104.0 in March. Economists had expected the index to edge down to 104.0 from the 104.2 originally reported for the previous month.

A separate report released by the Commerce Department showed new home sales unexpectedly spiked to their highest level in a year in March.

Trading on Wednesday may be impacted by reaction to the latest developments on Wall Street as well as the Commerce Department’s report on durable goods orders in the month of March.

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