Treasuries Give Back Ground Ahead Of Key Economic Data

(RTTNews) - After trending higher over the past several sessions, treasuries moved back to the downside during trading on Monday.

Bond prices moved modestly lower early in the session and slid more firmly into the red as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose 3.5 basis points to 4.253 percent.

The pullback by treasuries came as traders continue to express some uncertainty about the outlook for interest rates ahead of the release of some key U.S. economic data this week.

Traders are likely to keep an eye on reports on durable goods orders, consumer confidence and pending home sales in the coming days.

However, a report on personal income and spending that includes readings on inflation said to be preferred by the Federal Reserve will be released when the markets are closed for Good Friday.

Bond prices saw continued weakness as the Treasury Department revealed this month's auction of $66 billion worth of two-year notes attracted below average demand.

The two-year note auction drew a high yield of 4.595 percent and a bid-to-cover ratio of 2.62, while the ten previous two-year note auctions had an average bid-to-cover ratio of 2.71.

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 reaction to the latest U.S. economic data, including reports on durable goods orders and consumer confidence.