Treasuries experienced a significant rise during Tuesday's trading, effectively reversing the decline observed in the prior session. Early on, bond prices noticeably surged and maintained strong momentum throughout the day. Consequently, the yield on the key ten-year note, which inversely relates to its price, decreased by 8.2 basis points settling at 4.137 percent.
The apex of the day saw the ten-year yield conclude at almost its lowest point in nearly a month. This increase in Treasury securities was prompted by a report from the Institute for Supply Management indicating a slower-than-expected growth in the U.S. service sector in February. The institute revealed a drop in its services PMI to 52.6 in February, from 53.4 in January. Even though a score above 50 signals growth, economists had anticipated a slight drop to 53.0.
In addition, the Commerce Department reported a sharp decline in new orders for U.S. manufactured goods in January. Traders also kept an eye on the imminent congressional testimonies by Federal Reserve Chair, Jerome Powell. Powell is slated to testify before the House Financial Services Committee on Wednesday, followed by the Senate Banking Committee on Thursday.
The Federal Reserve leader is likely to echo recent remarks emphasizing the Central Bank's need for more robust evidence of inflation slowing down before reducing interest rates. The incoming monetary policy meeting set for March 19-20 is anticipated to maintain unchanged interest rates.
Powell's congressional testimonies will likely draw major attention on Wednesday. Alongside, reports on private-sector employment, job openings, and the Federal Reserve's Beige Book are expected to hold investors' interest.
