Treasuries Extend Pullback With Moderately Lower Close

(RTTNews) - Treasuries moved moderately lower over the course of the trading day on Monday, extending the pullback seen over the two previous sessions.

Bond prices moved to the downside in early trading and remained stuck in the red throughout the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 3.3 basis points to 2.656 percent.

With the increase on the day, the ten-year yield added to the gains posted in the two previous sessions, climbing further off the three-month closing low set last Wednesday.

The weakness among treasuries was partly due to a rally by stocks, which lifted the Dow to a new record intraday high.

Stocks benefited from news of Chinese capital market reforms designed to increase liquidity as well as additional news on the merger-and-acquisition front.

Nonetheless, bond traders seemed somewhat reluctant to make any significant moves ahead of the release of several key economic reports later in the week.

Traders are likely to keep a close eye on the Commerce Department's monthly reports on retail sales and housing starts as well as the Federal Reserve's report on industrial production.

Reports on consumer and producer price inflation, homebuilder confidence, and regional manufacturing activity are also likely to attract some attention.

The economic calendar will pick up on Tuesday with the release of reports on retail sales, import and export prices and business inventories.