Treasuries saw modest weakness during trading on Monday, giving back some ground after moving notably higher in the previous session.
Bond prices moved to the downside in early trading and remained stuck in the red throughout the holiday-shortened session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged up by 2 basis points to 1.774 percent.
The modest increase by the ten-year yield came after it fell by 4.6 basis points on Friday amid renewed worries about the looming fiscal cliff.
While continued fiscal cliff worries contributed to modest weakness on Wall Street, the latest developments were largely shrugged off by bond traders.
A number of the lawmakers that appeared on the Sunday talk shows expressed pessimism about their ability to reach a budget agreement.
With Congress in recess until after Christmas, lawmakers will only have a few days to try to reach an agreement before the year-end deadline.
Unless an agreement is reached, approximately $600 billion in automatic tax increases and government spending cuts are due to go into effect at the end of the year.
After the close of trading on Friday, President Obama renewed his call on House Republicans to pass a Senate-approved bill that would extend the tax cuts on the first $250,000 of income.
by RTT Staff Writer
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