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Treasuries Extend Notable Pullback Seen Last Friday

Following the significant pullback seen in the previous session, treasuries saw some further downside during trading on Monday.

Bond prices came under pressure in morning trading and remained firmly negative throughout the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 3.3 basis points to 2.724 percent.

The sustained weakness among treasuries came as traders continue to react to last Friday's monthly employment report showing much stronger than expected job growth in the month of January.

The jobs data has contributed to optimism about the economic outlook, reducing the appeal of safe havens such as bonds.

Traders largely shrugged off a report from the Commerce Department showing new orders for manufactured goods unexpectedly decreased in the month of November.

The Commerce Department said factory orders fell by 0.6 percent in November after jumping by 2.1 percent in October. The pullback surprised economists, who had expected orders to edge up by 0.2 percent.

Trading on Tuesday may be impacted by reaction to the Institute for Supply Management's report on service sector activity in January.

Bond traders are also likely to keep an eye on the results of the Treasury Department's auction of $38 billion worth of three-year notes.

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