After ending the previous session sharply lower, treasuries showed another significant move to the downside during trading on Monday.
Bond prices came under pressure in early trading and remained firmly negative throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, jumped by 10.2 basis points to 3.634 percent.
The ten-year yield added to the 13.6 basis point spike seen last Friday, reaching the level closing level in a month.
Concerns about the outlook for interest rates continued to weigh on treasuries following last week’s stronger than expected jobs data.
Trading activity was somewhat subdued, however, with a lack of major U.S. economic data keeping some traders on the sidelines.
The economic calendar remains relatively light throughout the week, although traders are likely to keep an eye on remarks by Federal Reserve Chair Jerome Powell on Tuesday.
After last week’s interest rate increase, traders are likely to look to Powell’s comments for additional clues about the outlook for further rate hikes.
Powell’s comments in a conversation with David Rubenstein, Chairman of the Economic Club of Washington, D.C., are likely to be focus in Tuesday.
The material has been provided by InstaForex Company – www.instaforex.com
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