Treasuries Closely Modestly Higher Following Recent Pullback

(RTTNews) - After pulling back sharply over the course of the two previous sessions, treasuries regained some ground during trading on Monday.

Bond prices failed to sustain an early upward move and pulled back near the unchanged line before moving back to the upside going into the close. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 1.8 basis points to 2.181 percent.

With the modest drop on the day, the ten-year yield partly offset the gains posted late last week, although it remains well off the one-year closing low set last Wednesday.

The modest strength among treasuries came as some traders moved back into the bond markets amid lingering concerns about the global economy.

Trading activity remained somewhat subdued, however, as a lack of major U.S. economic data kept some traders on the sidelines.

The economic calendar remains relatively light throughout the week following the slew of data released last week, although traders are likely to keep an eye on reports on home sales, consumer prices, and weekly jobless claims.

Meanwhile, Goldman Sachs slashed its year-end forecast for the ten-year yield due in part to downgrades to the European economic outlook.

Goldman Sachs said it now expected the ten-year yield to end the year at 2.5 percent compared to its previous forecast of 3 percent.

Following today's lack of economic data, trading on Tuesday could be impacted by the National Association of Realtors' report on existing home sales.