Treasuries came under pressure during trading on Monday, extending the sharp downward move seen over the course of the previous session.
Bond prices moved to the downside in early trading and remained stuck firmly in negative territory throughout the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 5.4 basis points to 2.215 percent.
With the increase on the day, the ten-year yield added to the 8.6 basis point gain it posted last Friday, reaching its highest closing level in over a year.
The continued weakness among treasuries was partly due to news that Standard & Poor's upgraded its outlook for the U.S. credit rating to "stable" from "negative."
S&P said the stable outlook reflects receding downside risks to the 'AA+' rating on the U.S., which reduces the likelihood of a ratings downgrade to less than one in three.
In August of 2011, S&P became the first credit rating agency to downgrade its sovereign credit ratings on the U.S. from the top rating of 'AAA' to the second highest rating of 'AA+'.
The agency said it does not see any material risks to its favorable view of the flexibility and efficacy of U.S. monetary policy and said it believes the U.S. economic performance will match or exceed its peers' in the coming years.
Traders also continued to digest last Friday's monthly jobs report, which showed continued job growth but an unexpected uptick by the unemployment rate.
Trading on Tuesday could be impacted by the release of the Commerce Department's report on wholesale inventories in the month of April.
For comments and feedback: editorial@rttnews.com