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2020.04.2119:18:00UTC+00Treasuries See Further Upside Amid Focus On Crude Oil Prices

Treasuries showed a notable move to the upside during trading on Tuesday, extending the upward move seen in the previous session.

Bond prices gave back some ground after an initial advance but remained firmly positive. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, slid by 5.5 basis points to 0.571 percent.

With the decrease on the day, the ten-year yield fell to its lowest closing level since hitting a record low in early March.

Treasuries continued to benefit from the appeal as a safe haven as yesterday's historic nosedive by crude oil prices raised worries about the impact on the already hard hit U.S. energy industry.

The price of crude oil for May delivery showed a substantial rebound after plummeting into negative territory for the first time ever on Monday, although later month contracts moved sharply higher.

The May contract for crude oil, which expires today, closed at $10.01 a barrel, spiking $47.64 from yesterday's close of negative $37.63 a barrel.

Meanwhile, the much more actively June contract extended the sell-off seen in the previous session, plunging $8.86 to $11.57 a barrel.

Lingering concerns about the ongoing coronavirus pandemic also contributed to the strength among treasuries, with President Donald Trump revealing plans to suspend immigration in the U.S. as a result of the outbreak.

"In light of the attack from the Invisible Enemy, as well as the need to protect the jobs of our GREAT American Citizens, I will be signing an Executive Order to temporarily suspend immigration into the United States!" Trump said in a post on Twitter on Monday.

In U.S. economic news, the National Association of Realtors released a report showing existing home sales pulled back sharply in the month of March.

NAR said existing home sales plunged by 8.5 percent to an annual rate of 5.27 million in March after spiking by 6.3 percent to a revised of 5.76 million in February.

Economists had expected existing home sales to plummet 8.1 percent to a rate of 5.30 million from the 5.77 million originally reported for the previous month.

Amid a quiet day on the U.S. economic front, trading on Wednesday may be impacted by developments on the coronavirus front and the price of crude oil.

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