Treasuries Give Back Ground After Moving Sharply Higher Late Last Week

After moving sharply higher over the two previous sessions, treasuries gave back some ground during trading on Monday.

Bond prices moved to the downside in early trading 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 3.4 basis points to 1.484 percent.

With the increase on the day, the ten-year yield rebounded after ending last Friday's trading at its lowest closing level in over three months.

The pullback by treasuries may partly have reflected profit taking following the rally seen to close out the previous week.

Late last week, treasuries seemed to benefit from weakness among stocks on Wall Street, which helped bond traders shrug off concerns about the Federal Reserve tapering its asset purchases.

Looking ahead, Fed Chair Jerome Powell is scheduled to testify before the House Select Subcommittee on the Coronavirus Crisis on Tuesday.

Powell is due to discuss the Fed's response to the pandemic but could also face questions about the outlook for monetary policy.

Reports on new and existing home sales, durable goods orders and personal income and spending may also attract attention in the coming days.

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