Treasuries Regain Ground Following Last Friday's Sell-Off

(RTTNews) - Treasuries moved notably higher over the course of the trading day on Monday, regaining some ground following the sell-off seen last Friday.

Bond prices moved to the upside in early trading and remained firmly positive throughout the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 4.5 basis points to 2.195 percent.

With the decrease on the day, the ten-year yield pulled back off the two-month closing high set in the previous session.

The rebound by treasuries came as traders went bargain hunting following the steep drop seen last Friday, which reflected concerns about higher interest rates.

Buying interest was somewhat subdued, however, as traders looked ahead to next week's Federal Reserve meeting.

After last Friday's much better than expected jobs report, the upcoming Fed meeting is likely to remain the main topic of conversation.

The Fed is not expected to raise interest rates at the meeting, but its accompanying statement may signal that a rate hike is on the horizon.

A lack of major U.S. economic data also kept some traders on the sidelines, although key reports on retail sales and wholesale price inflation are due to be released later in the week.

While Tuesday represents another quiet day on the U.S. economic front, bond traders are likely to keep an eye on the results of the Treasury Department's auction of $24 billion worth of three-year notes.