WASHINGTON (dpa-AFX) - Following the notable advance seen over the two previous sessions, treasuries saw further upside during trading on Monday.
Bond prices moved higher early in the session and remained in positive territory throughout the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell 3.5 basis points to 4.894 percent.
The ten-year yield closed lower for the third consecutive session, dropping to its lowest closing level in well over a month.
The continued strength among treasuries came amid a nosedive by the price of crude oil, with U.S. crude oil futures plummeting by more than 7 percent and tumbling well below $100 a barrel.
Crude oil prices are under pressure amid renewed optimism about a potential diplomatic solution to the ongoing conflict in the Middle East.
Over the weekend, Secretary of State Marco Rubio said President Donald Trump would like to resolve the U.S.-Iran war 'diplomatically.'
'What the president expresses to you is incredible confidence that if we needed to do something militarily, we would have the ability to do it, and we really we have everything we need to be successful,' Rubio said. 'But we would prefer to do it peacefully.'
Ongoing discussions involving Iranian officials and Qatari mediators have also raised hopes of possible breakthrough that could ease supply concerns and improve the outlook for global energy markets.
Treasuries may also have benefitted from their appeal as a safe haven amid a continued rotation out of the tech sector, with tech stocks on Wall Street seeing further downside over the course of the day.
In U.S. economic news, the Institute for Supply Management released a report showing its reading on U.S. manufacturing activity increased by more than expected in the month of October.
The ISM said its manufacturing PMI rose to 55.5 in October after edging down to 54.5 in September, with a reading above 50 indicating growth. Economists had expected the index to inch up to 54.6.
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