Treasuries Fluctuate But Extend Downward Trend

(RTTNews) - Treasuries turned in a relatively lackluster performance during trading on Monday before ending the day moderately lower.

Bond prices fluctuated early in the session but lingered in negative territory going into the close. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose 3.4 basis points to 2.862 percent.

The ten-year yield added to the 14.1 basis point spike seen last Thursday, ending the session at its highest closing level in well over three years.

The decrease by treasuries reflected reflect downward momentum amid indications the Federal Reserve plans to aggressively raise interest rates in an effort to combat elevated inflation.

Traders are likely to keep an eye on the Fed's Beige Book, due out Wednesday, for additional clues about the outlook for monetary policy.

On the U.S. economic front, the National Association of Home Builders released a report showing a continued deterioration in U.S. homebuilder confidence in the month of April.

The report showed the NAHB/Wells Fargo Housing Market Index fell to 77 in April from 79 in March, with the decrease matching economist estimates.

The housing market index declined for the fourth consecutive month, sliding to its lowest level since hitting 76 last September.

On Tuesday, the Commerce Department is scheduled to release its report on new residential construction in the month of March.