WASHINGTON (dpa-AFX) - Treasuries moved modestly higher during trading on Monday, regaining ground following the pullback seen over the final two sessions of the previous week.
Bond priced moved to the upside in morning trading and remained positive throughout the afternoon. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, dipped 1.5 basis points to 4.133 percent.
The modest rebound by treasuries came as traders looked ahead to the release of U.S. economic data that was delayed due to the recently ended government shutdown.
The Commerce Department kicked off the release its delayed data this morning with the release of a report unexpectedly showing a modest increase by construction spending in the month of August.
Reports on factory orders and the U.S. trade deficit in August are also due to be released in the coming days along with the monthly jobs report for September.
While the reports will be more backward looking than traders would prefer, the data could still impact the outlook for interest rates ahead of the Federal Reserve's next monetary policy meeting in December.
CME Group's FedWatch Tool is currently indicating a 55.1 percent chance the Fed will leave rates unchanged next month and a 44.9 percent chance of another quarter point rate cut.
Treasuries may have benefitted from their appeal as a safe haven, as stocks on Wall Street succumbed to selling pressure after showing a lack of direction earlier in the session.
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