Following the Columbus Day holiday on Monday, 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. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 4.8 basis points to 0.727 percent.

Treasuries benefited from their appeal as a safe haven as traders reacted to the latest developments regarding a new stimulus bill.

House Speaker Nancy Pelosi said over the weekend that talks will “remain at an impasse” until “serious issues” with the Trump administration’s latest proposal are resolved.

Pelosi continued her attacks on the White House’s latest offer in a letter to her Democratic colleagues on Tuesday, claiming the proposal “falls significantly short of what this pandemic and deep recession demand.”

“Significant changes must be made to remedy the Trump proposal’s deficiencies,” Pelosi added while saying she remains “hopeful that the White House will finally join us to recognize the needs of the American people.”

With Pelosi and the White House struggling to reach an agreement on a broad relief package, Senate Majority Leader Mitch McConnell has announced the Senate will vote on a more limited stimulus bill.

McConnell said the first order of business when the Senate returns next week will be voting on “targeted relief for American workers,” including new funding for the Paycheck Protection Program.

“Unless Democrats block this aid for workers, we will have time to pass it before we proceed as planned to the pending Supreme Court nomination as soon as it is reported by the Judiciary Committee,” McConnell said in a statement.

“Republicans do not agree that nothing is better than something for working families,” he added. “The American people need Democrats to stop blocking bipartisan funding and let us replenish the PPP before more Americans lose their jobs needlessly.”

In U.S. economic news, the Labor Department released a report showing a modest increase in consumer prices in the month of September, with the uptick in prices matching economist estimates.

The Labor Department said its consumer price index rose by 0.2 percent in September after climbing by 0.4 percent in August.

Prices for used cars and trucks spiked by 6.7 percent, accounting for most of the monthly increase by the headline index.

Excluding food and energy prices, core consumer prices still edged up by 0.2 percent in September following the 0.4 percent growth seen in August. The uptick in core prices also matched estimates.

A separate report on producer price inflation is scheduled to be released on Wednesday, although traders may pay closer attention to any developments regarding a stimulus bill.

The material has been provided by InstaForex Company – www.instaforex.com

Leave your vote

🚀If you want to get a Forex Robot Coded as per your trading strategy but are unable to do so because of the high price for the Robot then you can take advantage of the CROWD FUNDING campaigns feature. ✔ These are some crowd funding campaigns for Forex Robots, which when completed can provide the very same Forex Robot to the participants at an average price of $5-$10 per participant. ✔ You either participate in one of the already listed campaigns or send us your Forex strategy : Submit Crowd Funding Campaign , for which you would like the Forex Robot to be coded. A Crowd Funding Campaign would then be started for the same . ✔ All you have to do later on is to share the campaign online with your friends to encourage more people to participate in the campaign.

As a result, each participant can get that Forex robot for just a campaign contribution of $5 (which is the minimum). Participants can back the campaign by anything above or equal to $5 to reach the funding goal to close the campaign.