Treasuries saw modest weakness during trading on Tuesday, extending the pullback seen during the previous session.
Bond prices moved lower in morning trading and remained stuck in the red throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, edged up by 1.8 basis points to 2.895 percent.
The continued pullback by treasuries reflected easing concerns about the financial crisis in Turkey amid a rebound by the country’s currency.
The Turkish lira continues to recover from a record low after Turkey’s central bank pledged to provide liquidity and cut reserve requirements for banks.
However, traders seemed somewhat reluctant to make more significant moves ahead of the release of key reports on retail sales, industrial production, and housing starts in the coming days.
The Labor Department released a report showing import prices were unchanged in the month of July, as a jump in prices for fuel imports was offset by a drop in prices for non-fuel imports.
The report said import prices were unchanged in July after edging down by a revised 0.1 percent in June. Economists had expected import prices to inch up by 0.1 percent.
Meanwhile, the report said export prices fell by 0.5 percent in July after rising by a downwardly revised 0.2 percent in June. Export prices had been expected to rise by 0.2 percent.
Following a couple of relatively quiet days on the U.S. economic front, trading on Wednesday may be impacted by reaction to a slew of data.
Traders are likely to keep an eye on reports on retail sales, labor productivity and costs, industrial production, and homebuilder confidence.