After ending the previous session slightly lower, treasuries saw some further downside during the trading day on Tuesday.
Bond prices came under pressure early in the session and remained in negative territory throughout the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.3 basis points to 3.110 percent.
The weakness among treasuries came as stocks on Wall Street moved mostly higher after turning lower over the course of the previous session.
Easing trade concerns also weighed on treasuries, as President Donald Trump’s predicted the U.S. will reach a “great deal” with China on trade, although the president also warned of more tariffs if a deal is not possible.
“I think that we will make a great deal with China and it has to be great, because they’ve drained our country,” Trump told Laura Ingraham of Fox News on Monday.
The comments from Trump came after a report from Bloomberg said the U.S. is preparing to announce tariffs on all remaining Chinese imports if next month’s talks between Trump and Chinese President Xi Jinping fail to ease the trade war.
Trump and Xi are expected to meet on the sidelines of a Group of 20 summit in Buenos Aires, Argentina, beginning November 30th.
On the U.S. economic front, the Conference Board released a report showing a continued increase in consumer confidence in the month of September.
The Conference Board said its consumer confidence index rose to 137.9 in October from a downwardly revised 135.3 in September.
Economists had expected the consumer confidence index to drop to 136.3 from the 138.4 originally reported for the previous month.
With the increase, the consumer confidence index reached its highest level since hitting 142.5 in September of 2000.
Jobs data may attract attention on Wednesday, with payroll processor ADP scheduled to release its report on private sector employment in the month of October.