Extending the upward move seen last week, treasuries moved notably higher over the course of the trading day on Tuesday.
Bond prices moved to the upside early in the session and remained firmly positive throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, slid 6.1 basis points to 1.370 percent.
With the notable decrease on the day, the ten-year yield ended the session at its lowest closing level in well over four months.
The strength among treasuries came after the Institute for Supply Management released a report showing its reading on service sector activity pulled back off a record high in June.
The ISM said its services PMI slid to 60.1 in June from 64.0 in May, although a reading above 50 still indicates growth in the sector. Economists had expected the index to edge down to 63.5.
“The rate of expansion in the services sector remains strong, despite the slight pullback in the rate of growth from the previous month’s all-time high,” said Anthony Nieves, Chair of the ISM Services Business Survey Committee.
He added, “Challenges with materials shortages, inflation, logistics and employment resources continue to be an impediment to business conditions.”
Treasuries may also have benefited from weakness on Wall Street, where stocks gave back ground after climbing to record highs last week.
Trading on Wednesday may be impacted by reaction to the minutes of the Federal Reserve’s latest monetary policy meeting.