Treasuries Show Moderate Move To The Upside

April 21, 2020

Treasuries showed a moderate move back to the upside during trading on Monday following the pullback seen late in the previous session.

Bond prices gave back some ground after an early advance but remained in positive territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.8 basis points to 0.626 percent.

The strength among treasuries came as stocks on Wall Street moved mostly lower amid lingering concerns about the economic impact of the ongoing coronavirus pandemic.

An historic drop by the price of crude oil also increased the appeal of safe havens such as bonds, with a crude futures contract turning negative for the first time ever.

Crude for May delivery plummeted $55.90 to a negative $37.63 a barrel, while the more actively traded crude for June delivery plunged $4.60 to $20.43 a barrel.

Trading activity was somewhat subdued, however, as a lack of major U.S. economic data kept some traders on the sidelines.

A report of existing home sales is scheduled to be released on Tuesday, although traders may pay closer attention to the latest news on the coronavirus front.

The material has been provided by InstaForex Company – .

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