2017.11.2115:21:00UTC+00Treasuries Close Slightly Higher But Off Best Levels

After failing to sustain an initial move to the upside, treasuries pulled back near the unchanged line over the course of the trading session on Tuesday.

Bond prices pulled back well off their best levels but still ended the day slightly higher. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by nearly a basis point to 2.363 percent.

The pullback off early highs came after the National Association of Realtors released a report showing a much bigger than expected jump in existing home sales in the month of October.

The report said existing home sales surged up by 2.0 percent to an annual rate of 5.48 million in October from a downwardly revised 5.37 million in September.

Economists had expected existing home sales to climb by 0.7 percent to a rate of 5.43 million from the 5.39 million originally reported for the previous month.

NAR said existing home sales rose to their highest level since reaching 5.51 million in June but are still down by 0.9 percent compared to the same month a year ago.

"While the housing market gained a little more momentum last month, sales are still below year ago levels because low inventory is limiting choices for prospective buyers and keeping price growth elevated," said NAR chief economist Lawrence Yun.

Although activity is likely to be somewhat subdued ahead of the holiday on Thursday, trading on Wednesday may be impacted by reaction to reports on weekly jobless claims, durable goods orders, and consumer sentiment.

The Federal Reserve is also scheduled to release the minutes of its latest monetary policy meeting, which may shed additional light on the outlook for interest rates.