Treasuries Finish Lower

Prices came off the worst levels of the day after the release of the Federal Reserve's Beige Book

Treasuries came off their worst levels by the session's end but still finished lower. Other than a brief uptick on weaker-than-expected non-manufacturing ISM, Treasury prices spent the morning in the red.

A Medley report then caused renewed selling as the market interpreted it as saying a rate hike was imminent. But when it was actually shown to say a hike was months away, Treasuries reversed course. The pricing of a Mass muni deal which brought in buying also supported prices. Finally, the Federal Reserve's Beige Book was essentially a non-event, but not overly strong, which precipitated some short-covering into the close.

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