2020.07.1419:18:00UTC+00Treasuries Move Higher Amid Worries About Spiking Coronavirus Cases

After ending the previous session little changed, treasuries moved to the upside over the course of the trading day on Tuesday.

Bond prices gave back some ground going into the close but remained firmly positive. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.5 basis points to 0.615 percent.

The strength among treasuries came as traders continued to worry about the recent spike in coronavirus cases in several U.S. states and other parts of the world.

As global coronavirus cases topped 13 million, the World Health Organization warned the pandemic could get far worse if countries do not follow basic healthcare precautions.

WHO Director-General Tedros Adhanom Ghebreyesus said the pandemic is worsening globally and "there will be no return to the old normal for the foreseeable future."

California Governor Gavin Newsom rolled back the state's reopening on Monday following a recent spike in coronavirus cases, raising concerns the surge could lead to another nationwide lockdown.

Meanwhile, bond traders largely shrugged off a Labor Department report showing U.S. consumer prices increased by slightly more than expected in June following three straight monthly declines.

The Labor Department said its consumer price index climbed by 0.6 percent in June after edging down by 0.1 percent in May. Economists had expected consumer prices to rise by 0.5 percent.

The bigger than expected increase in consumer prices reflected the strongest price growth since August of 2012.

Excluding higher prices for food and energy, the core consumer price index ticked up by 0.2 percent in June after slipping by 0.1 percent in May. Core prices were expected to inch up by 0.1 percent.

"While reopening allows some return of consumer spending and therefore price increases as demand picks up, reopening is not going as smoothly or as continuously as hoped," said FHN Financial Chief Economist Chris Low.

"The bond market seems to have figured it out," he added. "The most inflation since 2012, and yields are lower on the news."

Reports on industrial production, import and export prices, and New York manufacturing activity may attract some attention on Wednesday.