WASHINGTON (dpa-AFX) - After an early fluctuation, treasuries moved higher over the course of the trading session on Monday, extending a recent upward move.
Bond prices climbed back near the unchanged line in morning trading but move back to the upside in the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.6 basis points to 2.665 percent.
With the continued advance, the ten-year yield reached its highest closing level in over three years.
While traders generally ignored the subsequent government shutdown in the days leading up to it, that did not stop them from responding to news that the Senate advanced a short-term spending bill.
The Senate voted 81 to 18 in favor of limiting debate on the bill, which would fund the government through February 8th.
Democrats agreed to vote to advance the short-term spending bill after Republican leaders promised to hold a vote on legislation providing protections for young illegal immigrants brought to the country as children.
On a quiet day on the U.S. economic front, trading on Tuesday may be impacted by reaction to whether the Senate and House finally pass the temporary spending bill.
Bond traders are also likely to keep an eye on the results of the Treasury Department's auction of $26 billion worth of two-year notes.
Copyright RTT News/dpa-AFX