Treasuries are showing a lack of conviction early Tuesday after finishing the previous session on a positive note. Some investors are taking shelter in safe investments as they await consumer and manufacturing data, while other traders are likely to go bargain hunting in the stock market after Monday's sharp pullback.
Investors are digesting data from the housing sector released earlier this morning showing a continued contraction in prices of homes for the early part of the year.
Meanwhile, traders are awaiting key reports indicative of near-term economic performance, with business activity figures from the Chicago-area as well as a consumer confidence report due out later this morning.
The benchmark ten-year note has moved to the upside after seeing some initial weakness, driving the yield on the note down 1 basis point to 2.704 percent.
The market is looking for further direction after the first piece of economic data was released earlier this morning.
Standard and Poor's released its report on home prices in the month of January, with the report showing continued broad based declines in the prices of existing single family homes.
The report showed that the S&P/Case-Shiller 20-City Composite Home Price Index for January fell 19.0 percent compared to the same month a year ago, reflecting an acceleration from a revised 18.6 percent year-over-year decline in December.
Economists had been expecting the 20-city home price index to show an 18.5 percent year-over-year decline, which would have been unchanged from the drop originally reported for December.
With the acceleration, the 20-city home price index fell at its fastest annual rate on record, although year-over-year data for the index only dates back to January of 2001.
Meanwhile, the results of the National Association of Purchasing Management-Chicago's business survey for March are scheduled to be released at 9:45 AM ET. Economists expect the business barometer index based on the survey to come in at 34.4.
The Conference Board is also scheduled to release its consumer confidence report for March at about 10 am ET. The report, which is based on a survey of 5,000 U.S. households, is expected to show that the consumer confidence index edged up to 28.0 in March.
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