WASHINGTON (dpa-AFX) - Following the pullback seen over the course of last Friday's session, treasuries saw further downside during trading on Monday.
Bond prices drifted lower in morning trading and remained firmly negative throughout the afternoon. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 4.6 basis points to 4.278 percent.
With the increase on the day, the ten-year yield reached its highest closing level in three months.
Concerns about the outlook for interest rates continued to weigh on treasuries ahead of the Federal Reserve's next monetary policy meeting in early November.
While the Fed is widely expected to lower interest rates by another quarter point next month, CME Group's FedWatch Tool currently indicating a nearly 30 percent chance the central bank will leave rates unchanged in December.
Recent upbeat U.S. economic data and comments from Fed officials have led to worries rates will be lowered more gradually than previously anticipated.
Meanwhile, traders were also looking ahead to the release of key U.S. economic data later in the week.
The monthly jobs report as well as a report on personal income and spending that includes the Federal Reserve's preferred inflation readings are likely to be in the spotlight.
Reports on third quarter GDP, consumer confidence, pending home sales and manufacturing sector activity may also attract some attention.
The data could impact the outlook for the economy as well as expectations regarding how quickly the Fed will lower interest rates.
Trading on Tuesday may be impacted by reaction to the latest U.S. economic data, including reports on consumer confidence and job openings.
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