WASHINGTON (dpa-AFX) - After moving to the upside in the previous session, treasuries saw some further upside during trading on Monday.
Bond prices moved mover early in the session and spiked higher in mid-morning trading and remained firmly positive thereafter. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, slid by 4.2 basis points to 2.220 percent.
The strength among treasuries came amid geopolitical concerns after North Korean Foreign Minister Ri Yong Ho claimed recent comments by President Donald Trump represent a 'declaration of war.'
'Last weekend, Trump claimed that our leadership wouldn't be around much longer, and hence, at last, he declared war on our country,' Ri said.
He added, 'Given the fact that this comes from someone that is currently holding the seat of the United States presidency, this is clearly a declaration of war.'
Traders were also digesting the results of the election in Germany over the weekend. German Chancellor Angela Merkel won a fourth term in office but will have to govern with a far less stable coalition.
Trading on Tuesday may be impacted by reports on new home sales and consumer confidence as well as any developments overseas.
Copyright RTT News/dpa-AFX