WASHINGTON (dpa-AFX) - Following the notable downward move seen over the course of the previous session, treasuries saw continued weakness 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, climbed 3.6 basis points to 4.340 percent.
With the increase on the day, the ten-year yield closed higher for the sixth straight session, reaching its highest closing level in well over three months.
The continued weakness among treasuries came amid ongoing concerns about the outlook for interest rates ahead of the Federal Reserve's two-day monetary policy meeting on Tuesday and Wednesday.
The Fed is widely expected to leave interest rates unchanged, but the central bank's accompanying statement and economic projections could have a significant impact on the outlook for rates.
Recent hotter-than-expected inflation readings have reduced optimism about the likelihood of the Fed's first rate cut coming in June.
In U.S. economic news, a report released by the National Association of Home Builders showed an unexpected improvement in U.S. homebuilder confidence in the month of March.
The report said the NAHB/Wells Fargo Housing Market Index rose to 51 in March from 48 in February. Economists had expected the index to come in unchanged.
With the unexpected increase, the housing market index surpassed the breakeven point of 50 for the first time since hitting 56 last July.
Trading activity on Tuesday may be somewhat subdued as traders look ahead to the Fed announcement, although a report on new residential construction may attract some attention.
Copyright(c) 2024 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2024 AFX News
