After moving notably higher over the course of the two previous sessions, treasuries showed a lack of direction during trading on Tuesday.
Bond prices spent the day bouncing back and forth across the unchanged line. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by less than a basis point to 2.376 percent.
The choppy trading on the day came as traders looked ahead to the Federal Reserve’s monetary policy announcement on Wednesday.
The Fed is widely expected to leave interest rates unchanged, but traders will be looking for clues about the possibility of a rate hike in December.
Traders may also have been reluctant to make significant moves ahead of the release of the closely watched monthly jobs report on Friday.
Subsequently, the markets shrugged off a report from the Conference Board showing a substantial improvement in consumer confidence in the month of October.
The Conference Board said its consumer confidence index jumped to 125.9 in October from an upwardly revised 120.6 in September. Economists had expected the index to inch up to 121.0 from the 119.8 originally reported for the previous month.
With the much bigger than expected increase, the consumer confidence index reached its highest level since hitting 128.6 in December of 2000.
The Fed announcement is likely to be in the spotlight on Wednesday, overshadowing reports on private sector employment, manufacturing activity, and construction spending.
The material has been provided by InstaForex Company – www.instaforex.com
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