Treasuries Close Modestly Higher Following Recent Weakness

(RTTNews) - Treasuries moved modestly higher during trading on Monday, regaining some ground following a recent downward trend.

Bond prices climbed off their worst levels going into the close but still ended the day in the red. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by 1.4 basis points to 1.963 percent.

The strength among treasuries came as traders looked to do some bargain hunting on the heels of the recent pullback.

Trading activity was somewhat subdued, however, as traders looked ahead to the Federal Reserve's monetary policy decision scheduled to be announced Wednesday afternoon.

While the Fed is widely expected to leave interest rates unchanged, traders are likely to pay close attention to the wording of the accompanying statement.

A slew of economic data is also scheduled to be released in the coming days, including reports on retail sales, industrial production, and producer and consumer price inflation.