After moving to the upside in the previous session, treasuries showed a lack of direction over the course of the trading day on Monday.
Bond prices spent most of the day lingering near the unchanged line. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by less than a basis point to 0.844 percent.
The choppy trading on the day came as disappointing economic data offset more upbeat news on the coronavirus vaccine front.
A report from the National Association of Realtors showed pending home sales in the U.S. unexpectedly decreased in the month of October.
NAR said its pending home sales index slid by 1.1 percent to 128.9 in October after tumbling by 2.0 percent to a revised 130.3 in September.
The continued decline came as a surprise to economists, who had expected pending home sales to jump by 1.0 percent compared to the 2.2 percent slump originally reported for the previous month.
A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale.
“Pending home transactions saw a small drop off from the prior month but still easily outperformed last year’s numbers for October,” said NAR’s chief economist Lawrence Yun. “The housing market is still hot, but we may be starting to see rising home prices hurting affordability.”
Meanwhile, Moderna (MRNA) announced that a phase 3 trial of its vaccine candidate indicates an efficacy of 94.1 percent.
The biotechnology company said it plans to request an Emergency Use Authorization from the FDA and conditional approval from the European Medicines Agency today.
Trading on Tuesday may be impacted by reaction to the Institute for Supply Management’s report on manufacturing activity in the month of November.
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