Profit Taking Contributes To Pullback By Treasuries

(RTTNews) - Following the upward move seen over the two previous sessions, treasuries gave back some ground during trading on Wednesday.

Bond prices moved to the downside 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, rose by 2.6 basis points to 4.282 percent.

The pullback by treasuries may partly have reflected profit taking after the ten-year yield ended Tuesday's trading at its lowest closing level in almost a month.

Traders also expressed some Uncertainty about the conflict in the Middle East as they await additional details about another round of peace talks between the U.S. and Iran.

In an interview with Fox Business, President Donald Trump expressed confidence the war is "very close to over" and reiterated his claim that Iran wants to make a deal "very badly."

Trump also predicted that the "stock market is going to boom" when the conflict between the U.S., Israel and Iran is finally over.

In U.S. economic news, the Labor Department released a report showing imports prices grew by much less than expected in the month of March.

The Labor Department said import prices climbed by 0.8 percent in March after increasing by a downwardly revised 0.9 percent in February.

Economists had expected import prices to surge by 2.0 percent compared to the 1.3 percent jump originally reported for the previous month.

Meanwhile, the report said export prices shot up by 1.6 percent in March after surging by an upwardly revised 1.9 percent in February.

Economists had expected export prices to jump by 1.5 percent, matching the increase originally reported for the previous month.

A separate report released by the Federal Reserve Bank of New York unexpectedly showed a moderate increase in New York manufacturing activity in the month of April.