WASHINGTON (dpa-AFX) - After showing a lack of direction early in the session, treasuries moved to the upside over the course of the trading day on Monday.
Bond prices climbed into positive territory as the day progressed, extending the rebound seen last Friday. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 3.3 basis points to 3.909 percent.
The strength among treasuries came as traders looked ahead to the release of several key U.S. economic reports last this week.
The Labor Department is scheduled to release reports on producer and consumer price inflation on Tuesday and Wednesday, respectively, with the data likely to impact the outlook for interest rates.
The reports are expected to show a slowdown in the annual rate of price growth, which could providing further impetus for the Federal Reserve to lower rates.
The Fed is widely expected to cut interest rates next month, with CME Group's FedWatch Tool currently indicating a split regarding the probability of a quarter or half point rate cut.
In light of recent concerns about the outlook for the economy, traders are also likely to keep a close eye on reports on retail sales and industrial production.
Trading on Tuesday may be impacted by reaction to the Labor Department's report on producer price inflation in the month of July.
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