WASHINGTON (dpa-AFX) - After coming under pressure early in the session on Monday, treasuries saw some further downside as the day progressed.
Bond prices remained firmly in negative territory going into the close of trading. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 3.3 basis points to 2.190 percent.
The weakness among treasuries came amid some strength on Wall Street, which lifted the Dow and the S&P 500 to new record highs.
The buying interest on Wall Street was partly in reaction to strength in the overseas markets, which benefited from political news out of Europe.
French President Emmanuel Macron's party won a clear parliamentary majority in Sunday's election, giving him a strong mandate in parliament to pursue his pro-European Union, business-friendly reform plans.
Additionally, Brexit negotiations with the EU have begun after Britain bowed to pressure for a formal opening to their long-awaited negotiations rather than first holding technical talks between civil servants.
Treasuries continued to decline following remarks by New York Federal Reserve President William Dudley, who predicted that inflation will gradually rise as a tight labor market leads to higher wages.
'Inflation is a little lower than what we would like, but we think that if the labor market continues to tighten, wages will gradually pick up and with that, inflation will gradually get back to 2 percent,' Dudley said.
The comments from Dudley came after the Fed's widely expected to decision to raise interest rates by a quarter point last week.
The economic calendar remains quiet on Tuesday, with traders likely to look ahead to reports on new and existing home sales and leading economic indicators in the coming days.
Copyright RTT News/dpa-AFX