Treasuries Extend Downtrend With Modestly Lower Close

(RTTNews) - While selling pressure was relatively subdued, treasuries moved modestly lower over the course of the trading day on Monday.

After moving to the downside in early trading, treasuries regained some ground but remained stuck in the red. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged up by 1.6 basis points to 2.613 percent.

With the slight uptick on the day, the ten-year yield extended a recent upward trend, reaching its highest closing level in almost a month.

The modest weakness among treasuries was partly due to the release of some upbeat economic data from Japan and China, which led to optimism about the global economy.

A report from Japan's Cabinet Office showed that the nation's GDP rose 1.6 percent in the first quarter, faster than the 1.5 percent growth estimated initially.

Additionally, China's General Administration of Customs said the Chinese trade surplus widened to $35.9 billion in May amid a 7 percent year-over-year jump in exports.

Nonetheless, trading activity remained somewhat subdued amid a lack of major U.S. economic data on the day.

Some key data is scheduled to be released later in the week, including reports on retail sales, producer prices, and consumer sentiment.

While the economic calendar remains relatively quiet on Tuesday, bond trading could be impacted by the release of the results of the Treasury Department's three-year note auction.