Treasuries Regain Ground Following Last Friday's Sell-Off

(RTTNews) - Treasuries moved notably higher over the course of the trading day on Monday, regaining some ground after seeing substantial weakness last Friday.

After seeing considerable strength in early trading, bond prices saw some further upside in the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 7 basis points to 2.645 percent.

With the drop on the day, the ten-year yield moved back to the downside after jumping 21.4 basis points on Friday to a nearly two-year closing high.

The rebound by treasuries came as some traders felt that the sell-off last Friday was overdone, while the high yields also increased the appeal of bonds.

Treasuries fell sharply on Friday in reaction to the Labor Department's monthly jobs report, which showed stronger than expected job growth in the month of June.

The report added to recent concerns that the Federal Reserve plans to scale back its asset purchase program in the near future.

Trading activity on Monday was somewhat subdued amid a lack of major U.S. economic data. Some traders also stayed on the sidelines after last week's Independence Day holiday.

Tuesday marks another quiet day on the economic front, although trading could be impacted by the release of the results of the Treasury Department's auction of $32 billion worth of three-year notes.