2024.01.3019:28:00UTC+00Treasuries Fluctuate Before Closing Moderately Higher

Treasuries fluctuated over the course of the trading session on Tuesday before eventually ending the day moderately higher.

Bond prices gave back ground after seeing early strength but moved back to the upside in afternoon trading. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 3.2 basis points to 4.059 percent.

After the early move to the upside, treasuries turned lower following the release of a Labor Department report showing an unexpected increase in job openings in the month of December.

The Labor Department said job openings rose to 9.03 million in December from an upwardly revised 8.93 million in November. Economists had expected job openings to dip to 8.75 million in December from the 8.79 million originally reported for the previous month.

A separate report released by the Conference Board showed a continued improvement in U.S. consumer confidence in the month of January.

The Conference Board said its consumer confidence index jumped to 114.8 in January from a downwardly revised 108.0 in December. Economists had expected the consumer confidence index to climb to 114.0 from the 110.7 originally reported for the previous month.

The consumer confidence index increased for the third consecutive month, reaching its highest level since December 2021.

Treasuries moved back to the upside in afternoon trading as traders looked ahead to the Federal Reserve's highly anticipated monetary policy announcement on Wednesday.

The Fed is widely expected to leave interest rates unchanged, but the accompanying statement could have a significant impact on the outlook for rates.

Optimism about a March rate cut has faded recently, with many economists now suggesting the Fed will wait until May to begin lowering rates.

While the Fed announcement will be in the spotlight on Wednesday, traders are also likely to keep an eye on a report on private sector employment.