WASHINGTON (dpa-AFX) - Extending the upward trend seen over the past couple weeks, treasuries showed a strong move to the upside during trading on Monday.
Bond prices advanced early in the session and remained firmly positive throughout the remainder of the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell 5.1 basis points to 4.180 percent.
With the continued decrease on the day, the ten-year yield ended the session at its lowest closing level in almost three months.
Treasuries continued to benefit from their appeal as a safe haven amid concerns about the economic impact of President Donald Trump's proposed tariffs.
During an appearance on Fox News over the weekend, Commerce Secretary Howard Lutnick described the proposed 25 percent tariffs on imports from Mexico and Canada as 'fluid' but said the additional 10 percent tariff on imports from China is 'set.'
Trump later clarified that the 25 percent tariffs on imports from Mexico and Canada will take effect tomorrow and reciprocal tariffs on other U.S. trade partners will be imposed on April 2nd.
On the U.S. economic front, the Institute for Supply Management released a report showing its reading on U.S. manufacturing activity edged slightly lower in February but still indicated growth in the sector for the second straight month.
The ISM said its manufacturing PMI slipped to 50.3 in February after rising to 50.9 in January, although a reading above 50 still indicates growth. Economists had expected the index to dip to 50.5.
The report also said the prices index surged to 62.4 in February from 54.9 in January, reflecting the largest month-over-month increase since January 2024.
A separate report released by the Commerce Department showed construction spending in the U.S. unexpectedly edged modestly lower in the month of January,
Amid a lack of major U.S. economic data, trading on Tuesday is likely to be driven by reaction to the latest news about Trump's tariffs on Mexico and Canada.
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