Treasuries Give Back Ground Following Mixed Economic Data

(RTTNews) - Following the strong upward move seen in the previous session, treasuries gave back some ground over the course of the trading session on Monday.

Treasuries moved lower in early trading and saw some further downside going into the close. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 3.8 basis points to 1.553 percent.

The pullback by treasuries came as traders cashed in on last Friday's gains following the release of a mixed batch of U.S. economic data.

On the U.S. economic front, the National Association of Home Builders released a report showing an improvement in homebuilder confidence in the month of August.

The report said the NAHB/Wells Fargo Housing Market Index climbed to 60 in August from a downwardly revised 58 in July.

Economists had expected the homebuilder confidence index to inch up to 60 from the 59 originally reported for the previous month.

Meanwhile, a separate report from the New York Federal Reserve unexpectedly showed a contraction in New York manufacturing activity.

The New York Fed said its general business conditions index fell to a negative 4.21 in August from a positive 0.55 in July. A negative reading indicates a contraction in New York manufacturing activity.

The decline by the index came as a surprise to economists, who had expected the index to climb to a positive 2.50.

Trading on Tuesday may be impacted by reaction some key U.S. economic data, including reports on consumer prices, housing starts, and industrial production.