Treasuries Move Sharply Higher Amid Sell-Off On Wall Street

(RTTNews) - Extending a recent upward trend, treasuries moved sharply higher over the course of the trading session on Monday.

After seeing initial strength, bond prices saw some further upside as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, tumbled by 11.3 basis points to 1.735 percent.

With the steep drop on the day, the ten-year yield added to recent losses and ended the session at its lowest closing level in a year.

The rally by treasuries was partly due to another sell-off on Wall Street, as stocks extended the sharp decline seen last Friday.

Worries about the outlook for the global economy weighed on stocks along with a notable decrease by the price of crude oil.

Crude for March delivery slumped $1.20 to $29.69 a barrel after plunging $2.73 or 8.1 percent to $30.89 a barrel last week.

However, the sharp jump by treasuries may have been exaggerated by light trading activity, with some traders staying on the sidelines amid a lack of major U.S. economic data.

The economic calendar remains relatively quiet throughout much of the week, although reports on retail sales, import and export prices, and consumer sentiment are all due to be released on Friday.

Traders are also likely to keep an eye on remarks by Federal Reserve Chair Janet Yellen, who is scheduled to deliver her semi-annual testimony to Congress on Wednesday and Thursday.

On Wednesday, trading may be impacted by the release of a report on wholesale inventories as well as the results of the Treasury Department's auction of $24 billion.