Treasuries Fluctuate Before Closing Firmly Negative

(RTTNews) - Treasuries fluctuated over the course of the trading session on Monday before eventually ending the day firmly in negative territory.

After recovering from an early slump, bond prices once again came under pressure as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 7.2 basis points to 4.405 percent.

The volatility in the bond markets came as President Donald Trump ramped up his attacks on Federal Reserve Chair Jerome, calling him "Mr. Too Late" and "a major loser" in a post on Truth Social.

In the same post, Trump also claimed there will be "almost no inflation" but warned "there can be a SLOWING of the economy" unless Powell lowers interest rates.

Trump also called on the Fed to lower rates in a separate post last week, declaring, "Powell's termination cannot come fast enough!"

Meanwhile, traders also kept an eye on the latest developments on the tariff front as they await progress on Trump's talks with U.S. trade partners.

China has threatened to retaliate against any countries that reach a trade deal with the U.S. at the expense of China's interests.

A spokesman for China's Ministry of Commerce was asked to respond to reports the Trump administration is preparing to put pressure on other countries to restrict trade with China in exchange for U.S. tariff exemptions.

"If this happens, China will never accept it and will resolutely take countermeasures in a reciprocal manner," the spokesman responded, according to a Google translation. "China is determined and capable of safeguarding its own rights and interests."

Amid another quiet day on the U.S. economic front, trading on Tuesday may be impacted by reaction to any trade developments as well as remarks by several Fed officials.