WASHINGTON (dpa-AFX) - After moving modestly higher early in the session, treasuries came under pressure over the course of the trading day on Monday.
Bond prices dropped firmly into negative territory in mid-morning trading and remained in the red for the rest of the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 3.4 basis points to 4.275 percent.
The weakness among treasuries came following the release of a report from the Institute for Supply Management showing manufacturing activity in the U.S. unexpectedly expanded for the first time in 12 months in January.
The ISM said its manufacturing PMI jumped to 52.6 in January from 47.9 in December, with a reading above 50 indicating growth. Economists had expected the index to inch up to 48.5.
Signs of de-escalating tensions between the U.S. and Iran also reduced treasuries' safe haven appeal amid reports Iran is prepared to negotiate with the U.S. over its nuclear program.
Treasuries saw continued weakness after President Donald Trump announced in a post on Truth Social that he has reached a trade deal with India.
Following a conversation with Indian Prime Minister Narendra Modi, Trump said the U.S. would reduced its reciprocal tariffs on India to 18 percent from 25 percent, while India purportedly agreed to reduce their tariffs and non-tariff barriers against the U.S. to zero.
Looking ahead, trading on Tuesday may be impacted by reaction to the Labor Department's report on job openings in the month of December.
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