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Treasuries Give Back Ground Amid Optimism About Trade Talks

After trending higher over the past several sessions, treasuries gave back ground during the trading day on Monday.

Bond prices moved to the downside early in the day and remained negative throughout the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.9 basis points to 2.661 percent.

The increase by the ten-year yield came after it ended last Friday's trading at its lowest closing level in over a month.

Optimism about the next round of trade talks between the U.S. and China due to take place later this week contributed to the pullback by treasuries.

Treasury Secretary Steven Mnuchin will lead the U.S. delegation to Beijing as the world's two largest economies seek to reach a trade deal before an early March deadline.

A report from Axios said President Donald Trump's advisers have informally discussed holding a summit with Chinese President Xi Jinping at Mar-a-Lago next month.

Two administration officials with direct knowledge of the internal discussions told Axios the meeting could come as soon as mid-March but stressed that nothing is set.

The report comes after Trump confirmed last week that he would not meet with Xi ahead of the deadline, when a jump in tariffs on Chinese goods is currently set to take effect.

Trump could delay the tariff increase if the talks between U.S. and Chinese officials continue to make progress toward a trade deal.

Trading activity was somewhat subdued, however, as uncertainty about trade made traders reluctant to make more significant moves.

A lack of major U.S. economic data also kept traders on the sidelines, although reports on consumer and producer price inflation, import and export prices and industrial production are likely to attract attention in the coming days.

While the economic calendar remains relatively light on Tuesday, traders are likely to keep an eye on a Labor Department report on job openings in December.

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