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Treasuries Give Back Ground But Close Well Off Worst Levels

Treasuries gave back ground during trading on Monday following the strong move to the upside that was seen last Friday.

Bond prices came under pressure early in the session but climbed well off their worst levels as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 1.7 basis points to 2.379 percent.

Traders were reacting to news that Senate Republicans narrowly approved a massive tax reform bill early Saturday morning.

The Senate voted 51 to 49 in favor of the bill known as the Tax Cuts and Jobs Act, with the vote largely coming down along party lines.

Senator Bob Corker, R-Tenn., was the only Republican to vote against the bill amid concerns about the legislation's impact on the budget deficit.

"With the great vote on Cutting Taxes, this could be a big day for the Stock Market - and YOU!" President Donald Trump said in a post on Twitter.

With the vote to approve the bill, lawmakers from the Senate and House will need to go to conference to work out differences in the bills passed by the two chambers.

On the U.S. economic front, the Commerce Department released a report showing a modest decrease in new orders for manufactured goods in the month of October.

The report said factory orders edged down by 0.1 percent in October after surging up by 1.7 percent in September. Economists had expected orders to drop by 0.4 percent.

Trading on Tuesday may be impacted by reaction to a report on activity in the service sector in the month of November.

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