The US Treasuries gains stalled on Tuesday, largely rebuffing weaker than expected US economic data. Markets now look ahead to June personal income/spending and July vehicle sales data on Tuesday. However, the key focus for the week remains the July employment report on Friday.
The yield on the benchmark 10-year Treasury note rose 6 basis points to 1.552 percent, the yield on 5-year note jumped 4-1/2 basis points at 1.099 percent and the yield on short-term 2-year note climbed 2 basis points to 0.699 percent by 12:40 GMT
The July Institute for Supply Management US estimate of national manufacturing conditions pushed higher on the month to 52.6, below market expectations for a 53.0 result, as compared to the unrevised 53.2 reading received in June. Meanwhile, prices paid pushed lower to around 55.0, from down 60.5.
Similarly, the June US Commerce Department construction spending report revealed a -0.6 percent m/m decrease, well below expectations for a +0.6 percent m/m increase, versus the revised -0.1 percent m/m reading seen in May (previous was -0.8 percent m/m).
Lastly, crude oil prices stabilized with some bargain-hunting after dropping below $40 for the first time since April. The International benchmark Brent futures rose 0.93 percent to $42.53 and West Texas Intermediate (WTI) jumped 0.92 percent to $40.43 by 12:00 GMT.
Meanwhile, the S&P 500 Futures traded 3 points lower at 2,161 by 12:40 GMT.
