The market rallied early Wednesday after a rout in Chinese stocks, but gains faded on the release of the March FOMC minutes
S&P MARKETSCOPE: Long-dated Treasuries closed up slightly Wednesday, but well off session highs. The 10-year note edged up 03/32 in price to 97-03/32 for a yield of 4.87%. The 30-year bond rose 07/32 to 96-04/32 for a yield
The market rose early on some flight to safety buying after a plunge in Chinese stocks overnight. However, these trades were quickly unwound as U.S. equities started to recover from an opening drop. Meanwhile, an upbeat stance regarding the outlook for the economy in the minutes to the March FOMC meeting contributed further to the pullback from opening gains in bonds.
The 10-year Treasury yield still faces technical resistance at 4.90%. If bond sellers start to lose steam, the market would be at a natural place for an oversold bounce to occur soon.