US Treasuries trade lower despite weak economic data, employment report eyed

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.