{"id":107356,"date":"2021-01-05T22:17:16","date_gmt":"2021-01-05T22:17:16","guid":{"rendered":"https:\/\/precoinnews.com\/?p=107356"},"modified":"2021-01-05T22:17:16","modified_gmt":"2021-01-05T22:17:16","slug":"treasuries-move-to-the-downside-as-economic-optimism-persists","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/treasuries-move-to-the-downside-as-economic-optimism-persists\/","title":{"rendered":"Treasuries Move To The Downside As Economic Optimism Persists"},"content":{"rendered":"
After ending the previous session nearly unchanged, treasuries showed a notable move to the downside during trading on Tuesday.<\/p>\n
Bond prices came under pressure in morning trading and remained firmly negative throughout the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 3.8 basis points to 0.955 percent.<\/p>\n
The weakness among treasuries came as traders remain optimistic about an economic recovery despite the recent spike in coronavirus<\/span> cases.<\/p>\n Adding to the positive sentiment, a report released by the Institute for Supply Management showed an unexpected acceleration in the pace of growth in manufacturing activity in the month of December.<\/p>\n The ISM said its manufacturing PMI climbed to 60.7 in December after dipping to 57.5 in November, with a reading above 50 indicating growth. Economists had expected the index to edge down to 56.6.<\/p>\n With the unexpected increase, the manufacturing index reached its highest level since hitting 61.3 in August of 2018.<\/p>\n However, economists noted the headline index was artificially boosted by a jump by the supplier deliveries index, which suggested deliveries slowed at a faster rate.<\/p>\n Selling pressure was also kept somewhat in check as traders await the results of two key Senate runoffs in Georgia.<\/p>\n The outcome of the runoff elections will determine which party controls the Senate and could have a major impact on what President-elect Joe Biden is able to accomplish.<\/p>\n Even with a Democratic-controlled Senate, Biden may still face difficulty pushing through his proposed tax policies but could have more success on issues like government spending, including increasing the size of stimulus checks.<\/p>\n The results of the elections are likely to attract attention on Wednesday along with a report on private sector employment and the minutes of the latest Federal Reserve meeting. <\/p>\n