2017.03.2115:22:00UTC+00Treasuries Turn Higher After Seeing Initial Weakness

After initially moving to the downside, treasuries showed a significant turnaround over the course of the trading session on Tuesday.

Bond prices turned higher in morning trading and remained firmly positive throughout the afternoon. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 3.7 basis points to 2.436 percent.

The strength that emerged among treasuries came as stocks on Wall Street showed a considerable move to the downside on the day.

Uncertainty about the fate of the Republican plan to repeal and replace Obamacare weighed on stocks ahead of an anticipated vote on Thursday.

While President Donald Trump and Republican leaders have expressed optimism the bill will pass, a number of GOP lawmakers remain opposed to the legislation.

Trump has suggested the GOP cannot move forward with tax reform plans until lawmakers keep the promise to repeal and replace Obamacare.

A failure to approve the Obamacare replacement plan could also raise questions about Trump's ability to achieve other policy goals that are popular on Wall Street.

Following a couple of quiet days on the U.S. economic front, trading on Wednesday may be impacted by reaction to the National Association of Realtors report on existing home sales in February.

Existing home sales are expected to drop to an annual rate of 5.58 million in February after jumping to a rate of 5.69 million in January.