On Monday, after an initial downturn early in the session, Treasury securities incrementally advanced over the trading day.Bond prices recovered from their early lows, entering positive territory and then moving relatively sideways in afternoon trading. Consequently, the yield on the benchmark ten-year note, which inversely correlates with its price, dipped by 1.3 basis points to 3.697 percent.This marks the fifth successive session in which the ten-year yield has declined, reaching its lowest closing level in over a year.Treasuries gained support from optimism surrounding prospective interest rate movements ahead of the Federal Reserve’s forthcoming monetary policy meeting.While the Fed is broadly anticipated to lower interest rates in this meeting, the extent of the rate cut remains under discussion.According to the CME Group’s FedWatch Tool, there is currently a 71 percent probability that the Fed will reduce rates by 25 basis points, and a 29 percent likelihood of a 50 basis point reduction.Later this week, the Labor Department is set to release reports on consumer and producer price inflation, which could influence the rate outlook.These reports are expected to reveal a slowdown in the annual growth rate of consumer prices, but an acceleration in the annual growth rate of producer prices.The absence of significant U.S. economic data may result in relatively light trading on Tuesday, ahead of the closely watched inflation data.The material has been provided by InstaForex Company – www.instaforex.com
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