WASHINGTON
(dpa-AFX) - Following the notable pullback seen over the two previous sessions, treasuries moved back to the upside during trading on Monday.
Bond prices moved higher in early trading and remained positive for the remainder of the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.6 basis points to 2.022 percent.
Treasuries benefited from weakness on Wall Street, as stocks gave back some ground on the heels of the strong rebound seen to close out the previous week.
The major averages pulled back firmly into negative territory but remained above the more than one-year closing lows set last Wednesday.
Weighing on stocks and increasing the appeal of treasuries was a sharp drop by the price of crude oil, which came under pressure after showing a strong upward move last week.
Crude oil for March delivery tumbled $1.85 or 5.7 percent to $30.34 a barrel after jumping $2.66 or 9 percent to $32.19 a barrel in the previous week.
Profit taking contributed to the decrease by the price of oil along with continued oversupply concerns after
Iraq
announced record production in December.
Nonetheless, overall trading activity was somewhat subdued on the day amid a lack of major
U.S.
economic data on the day.
Several key economic events are scheduled for later this week, including the Federal Reserve's monetary policy announcement on Wednesday.
The Fed is widely expected to leave interest rates unchanged, but traders are likely to pay close attention to the accompanying statement.
Trading on Tuesday may be impacted by reports on home prices and consumer confidence as well as the Treasury Department's auction of $26 billion worth of two-year notes.
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Source: Equities.com News
(January 25, 2016 - 5:43 AM EST)
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