Treasuries Finish Lackluster Session Nearly Flat

(RTTNews) - Amid a quiet day on the U.S. economic front, treasuries showed a lack of direction during trading on Monday.

Bond prices spent much of the day lingering near the unchanged line before closing nearly flat. As a result, the yield on the benchmark ten-year note, which moves opposite of its price inched up by less a basis point to 1.571 percent.

The choppy trading on the day came as traders were looking ahead to the Federal Reserve's two-day monetary policy meeting scheduled to begin on Tuesday.

The Fed is widely expected to leave interest rates unchanged as officials wait to see the fallout from Britain's vote to leave the European Union.

The central bank's accompanying statement is still likely to be in focus, as investors attempt to gauge the outlook for the next rate hike.

Meanwhile, traders largely shrugged off the results off the Treasury Department's auction of $26 billion worth of two-year notes.

The two-year note auction drew a high yield of 0.760 percent and a bid-to-cover ratio of 2.52, while the ten previous two-year note auctions had an average bid-to-cover ratio of 2.90.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

Trading on Tuesday may be impacted by reports on new home sales and consumer confidence as well as the Treasury's auction of five-year notes.