Treasuries Close Roughly Flat Following Lackluster Trading Session

(RTTNews) - After seeing early strength, treasuries fluctuated over the course of the trading session on Monday before ending the day roughly flat.

Bond prices pulled back off their early highs and spent the rest of the day lingering near the unchanged line. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by less than a basis point to 1.587 percent.

The choppy trading on the day came as traders seemed reluctant to make significant moves following the recent pullback off record highs.

Traders largely shrugged off a report from the National Association of Home Builders showing a modest deterioration in consumer sentiment in the month of July.

The report said the NAHB/Wells Fargo Housing Market Index edged down by a point to 59 in July after climbing by two points to 60 in June. Economists had expected the index to inch up to 61.

"For the past six months, builder confidence has remained in a relatively narrow positive range that is consistent with the ongoing gradual housing recovery that is underway," said NAHB Chairman Ed Brady.

He added, "However, we are still hearing reports from our members of scattered softness in some markets, due largely to regulatory constraints and shortages of lots and labor."

Tuesday morning, the Commerce Department is scheduled to release a separate report on new residential construction in the month of June.

Economists expect housing starts to climb to an annual rate of 1.170 million in June from a rate of 1.164 million in May.