WASHINGTON (dpa-AFX) - After showing a lack of direction early in the session, treasuries moved modestly higher over the course of the trading day on Monday.
Bond prices fluctuated in morning trading but managed to remain in positive territory throughout the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, dipped 2.0 basis points to 4.200 percent.
The ten-year yield added to the 14.0 basis point plunge seen in the previous session, falling to its lowest closing level in three months.
Treasuries continued to benefit from their appeal as a safe haven following last Friday's weaker than expected jobs data and concerns about the economic impact of President Donald Trump's new tariffs.
Optimism the weak jobs data will lead the Federal Reserve to lower interest rates next month also contributed to the continued strength among treasuries.
According to CME Group's FedWatch Tool, the chances of a quarter point rate cut in September have jumped to 91.9 percent from 63.1 percent a week ago.
On the U.S. economic front, the Commerce Department released a report showing factory orders pulled back sharply in the month of June.
The Commerce Department said factory orders dove by 4.8 percent in June after soaring by an upwardly revised 8.3 percent in May.
Economists had expected factory orders to plunge by 5.0 percent compared to the 8.2 percent surge originally reported for the previous month.
Trading on Tuesday may be impacted by reaction to the latest U.S. economic data, including reports on the U.S. trade deficit and service sector activity.
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