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Treasuries Move To The Downside Amid Easing Trade Concerns

After ending the previous session nearly flat, treasuries showed a moderate move to the downside during trading on Monday.

Bond prices moved lower early in the session and remained stuck in negative territory throughout the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.4 basis points to 2.995 percent.

Easing trade concerns ahead of a second round of trade talks between the U.S. and China this week may have contributed to the weakness among treasuries, which are typically seen as a safe haven.

Ahead of the meeting, President Donald Trump indicated in a post on Twitter that he is working with Chinese President Xi Jinping to get Chinese telecom giant ZTE Corp. "back into business, fast."

"President Xi of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast," Trump tweeted. "Too many jobs in China lost. Commerce Department has been instructed to get it done!"

ZTE has been crippled by a ban on U.S. supplies to its business, and sources briefed on the matter told Reuters that China has demanded the issue be resolved as a prerequisite for broader trade negotiations.

In a subsequent tweet, Trump expressed optimism about trade talks with China despite claiming past negotiations have been one-sided in favor of Beijing.

"China and the United States are working well together on trade, but past negotiations have been so one sided in favor of China, for so many years, that it is hard for them to make a deal that benefits both countries," Trump tweeted. "But be cool, it will all work out!"

Trading activity remained relatively subdued, however, with a lack of major U.S. economic data keeping some traders on the sidelines.

Following the quiet day on the U.S. economic front, trading on Tuesday may be impacted by reaction to reports on retail sales, homebuilder confidence, and New York manufacturing activity.

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