Treasuries showed a notable move to the upside over the course of the trading day on Monday, regaining some ground after falling sharply during trading on Friday.
Bond prices moved steadily higher as the day progressed, ending the session firmly in positive territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 4.8 basis points to 1.901 percent.
With the drop on the day, the ten-year yield partly offset the 12.4 basis point gain that it posted in the previous session.
The rebound by treasuries was partly due to renewed concerns about the financial situation in Greece, as the debt-plagued nation missed a deadline on enacting reforms necessary to receive a new bailout from the European Union and the International Monetary Fund.
Peter Boockvar, equity strategist at Miller Tabak, said, "Greece's hourglass is running out of sand as officials scramble to turn it over again."
"As pressure continues to be brought upon Greek politicians to agree to more budget cuts before they get more bailout money and a PSI agreement remains elusive, however close the parties continue to say they are to a deal, the Greek 1-year yield is rising above 500%," he added.
Amid a lack of major U.S. economic data, news out of Europe is likely to remain in focus on Tuesday. Traders are also likely to keep an eye on Federal Reserve Chairman Ben Bernanke's testimony before the Senate Budget Committee.
Bond trading could also be impacted by the release of the results of the Treasury Department's auction of $32 billion worth of three-year notes.
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Market Analysis
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.