2021.08.0319:33:00UTC+00Treasuries Close Roughly Flat After Seeing Early Strength

After moving notably higher in the previous session, treasuries ended the trading day on Tuesday nearly unchanged.

Bond prices moved to the upside early in the day before pulling back over the course of the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by less than a basis point to 1.176 percent.

The slight uptick by the ten-year yield came after it ended Monday's trading at its lowest closing level in almost six months.

The roughly flat close by treasuries came as traders weighed optimism about the economic outlook against the recent surge in coronavirus cases around the world.

Recent data has shown some signs of slowing economic growth, but traders may see that as further proof the Federal Reserve will not begin scaling back stimulus anytime soon.

The Federal Reserve has repeatedly pledged to maintain its asset purchases at current levels until "substantial further progress" has been made toward its maximum employment and price stability goals.

Last week, Fed Chair Jerome Powell indicated the central bank is a "ways away" from altering policy, noting there is still "some ground to cover on the labor market side."

Concerns about the rapid spread of the delta variant of the coronavirus continue to weigh on the minds of investors, however, as the new wave has led to renewed lockdowns in some parts of the world.

Data from the Centers for Disease Control and Prevention has shown a jump in new coronavirus cases in the U.S. in recent weeks, with the seven-day moving average of new cases reaching 72,790 last Friday, surpassing the peak seen last summer.

At the same time, the increase has also seeming led to more Americans getting vaccinated, with the CDC saying 70 percent of U.S. adults have now received at least one dose of a coronavirus vaccine.

Trading on Wednesday may be impacted by reaction to reports on private sector employment and service sector activity in the month of July.

The Treasury Department is also scheduled to announce the details of this month's auctions of three-year and ten-year notes and thirty-year bonds.