Treasuries Close Roughly Flat As Early Strength Fades

After failing to sustain an early move to the upside, treasuries showed a lack of direction over the course of the trading session on Monday before closing roughly flat.

Bond prices pulled back off their early highs and spent the bulk of the session lingering near the unchanged line. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by less than a basis point to 3.825 percent.

Treasuries initially benefited from their appeal as a safe haven, as a surge in new Covid cases in China raised concerns about the outlook for the global economy.

China reported the death of three people after contracting Covid, marking the first Covid-related deaths that China's mainland has reported since May.

The surge in new cases had led China to impose stringent restrictions in cities like Beijing and Shanghai, shattering recent hopes the country would soon ease Covid curbs.

Buying interest waned over the course of the morning, however, with some traders likely looking to get a head start on the upcoming Thanksgiving Day holiday.

A lack of major U.S. economic data may also have kept some traders on the sidelines, although reports on durable goods orders and new home sales are likely to attract attention on Wednesday along with the minutes of the latest Federal Reserve meeting.

Trading activity is likely to remain somewhat subdued on Tuesday amid another quiet day on the U.S. economic front.

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