Treasuries Close Roughly Flat Following Recent Strength

(RTTNews) - After an early move to the upside, treasuries fluctuated over the course of the trading session on Monday before ending the day roughly flat.

Bond prices spent much of the day lingering near the unchanged line. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down 1.1 basis points to 4.489 percent.

With the downward move, the ten-year yield extended the pullback seen over the three previous sessions, dipping to its lowest closing level in almost a month.

The choppy trading on the day came as bond traders seemed reluctant to make significant moves amid a lack of major U.S. economic data.

The economic calendar remains relatively quiet throughout the week, although a preliminary reading on consumer sentiment in May might attract some attention along with remarks by several Fed officials.

Treasuries showed a strong move to the upside to close out the previous week following the Federal Reserve's monetary policy announced last Wednesday.

Relatively dovish comments from Federal Reserve Chair Jerome Powell combined with weaker-than-expected job growth in April have largely eliminated short-lived concerns the Fed might actually consider raising rates.

Investors have instead grown increasingly confident about a rate cut in the coming months, with the chances rates will be lower by September now at 83.5 percent, according to CME Group's FedWatch Tool.