Treasuries Move To The Upside As Fed Announcement Looms

(RTTNews) - After ending last Friday's trading roughly flat, treasuries showed a moderate move to the upside during trading on Monday.

Bond prices moved higher early in the session and remained positive throughout the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.6 basis points to 2.055 percent.

The advance by treasuries came as traders looked ahead to the Federal Reserve's highly anticipated monetary policy decision on Wednesday.

The Fed is widely expected to cut rates by at least 25 basis points in a proactive move aimed at offsetting the negative effects of the U.S.-China trade war.

Assuming the Fed cuts rates as expected, traders are likely to pay close attention to accompanying statement for clues about the potential for future rate cuts.

On Friday, the Labor Department is due to release it closely watched monthly jobs report, which could also have a significant impact on the outlook for rates.

Employment is expected to climb by 170,000 jobs in July after jumping by a much bigger than expected 224,000 jobs in June, while the unemployment rate is expected to hold at 3.7 percent.

Reports on personal income and spending, consumer confidence, and pending home sales may attract some attention on Tuesday, although some traders may stick to the sidelines ahead of the Fed announcement.