FX.co ★ Treasuries Move Back To The Downside Amid Lingering Rate Worries

On Wednesday, the value of Treasuries declined, reversing the upward trend observed in the previous session. Bond prices faced a downturn early in the day and stayed significantly negative throughout. Consequently, the yield on the ten-year benchmark note, conversely related to its price, rose by 5.4 basis points to 4.652 percent.

This decline in treasuries was rooted in continued apprehension about interest rate forecasts preceding the Federal Reserve meeting scheduled for next week. Although it is anticipated that the Fed will maintain the current interest rates, traders will be on the lookout for any hint of potential rate cuts in the future.

Late this week, the Commerce Department is set to publish a report on personal income and expenditure that includes inflation measurements favored by the Fed.

On the domestic economic front, a report by the Commerce Department revealed that new orders for durable goods manufactured in the U.S. grew more than projected in March. According to the report, orders for durable goods skyrocketed by 2.6 percent in March, following a downwardly revised growth of 0.7 percent in February.

Economists had projected a sharp increase of 2.3 percent in durable goods orders, as opposed to the 1.3 percent rise reported for the month before. Ignoring the sudden upsurge in orders for transportation equipment, durable goods orders just about rose by 0.2 percent in March, following a 0.1 percent increase in February. Orders excluding transportation were predicted to increase by 0.3 percent.

Looking forward, the market reaction to reports on the first quarter GDP, weekly jobless claims, and pending home sales may influence trading on Thursday.