Treasuries Regain Ground Following Recent Weakness

(RTTNews) - After trending lower over the past several sessions, treasuries regained some ground over the course of the trading day on Monday.

Bond prices moved steadily higher throughout much of the trading session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.8 basis points to 1.766 percent.

With the drop on the day, the ten-year yield gave back some ground after reaching a four-month closing high last Friday.

The rebound by treasuries came following the release of some disappointing U.S. economic data, including a report from the Federal Reserve showing a smaller than expected increase in industrial production in September.

The Fed said industrial production edged up by 0.1 percent in September after falling by a revised 0.5 percent in August. Economists had expected production to rise by 0.2 percent.

A separate report from the New York Fed unexpectedly showed a continued decline in regional manufacturing activity in the month of October.

The New York Fed said its general business conditions index slid to a negative 6.8 in October from a negative 2.0 in September, with a negative reading indicating a contraction in activity.

The drop by the general business conditions index came as a surprise to economists, who had expected the index to rise to a positive 1.0.

Trading on Tuesday may be impacted by reaction to reports on consumer price inflation and homebuilder confidence.