Treasuries Move Moderately Higher As Fed Meeting Looms

(RTTNews) - Treasuries moved moderately higher over the course of the trading session on Monday, extending a recent upward trend.

Bond prices moved roughly sideways going into the close, holding on to modest gains. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, dipped 2.3 basis points to 1.616 percent.

With the decrease on the day, the ten-year yield continued to move lower, hitting its lowest closing level in well over three years.

The continued strength seen by treasuries came as traders reacted to the mass shooting in a nightclub in Orlando over the weekend, which left 50 people dead.

The attack has raised some concerns about the economy amid worries that Americans may be more reluctant to enjoy the nightlife.

Concerns about Britain leaving the European Union also increased the appeal of treasuries ahead of next week's referendum on the so-called Brexit.

Trading activity was somewhat subdued, however, with traders looking ahead to the Federal Reserve's monetary policy announcement on Wednesday.

The Fed is widely expected to leave interest rates unchanged, but traders are likely to pay close attention to the accompanying statement.

While the Fed announcement will be the main focus this week, traders will also be presented with a slew of U.S. economic data.

The reports on retail sales, industrial production, housing starts and producer and consumer price inflation could impact the outlook for future Fed decisions.

Reports on retail sales, import and export prices, and business inventories may attract attention on Tuesday, but trading activity is likely to remain light as the Fed's two-day meeting gets underway.