Treasuries Show Notable Move To The Downside

(RTTNews) - Following the volatility seen in the previous session, treasuries showed a notable move to the downside during trading on Monday.

Bond prices came under pressure early in the session and remained firmly negative throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 7.5 basis points to 3.110 percent.

The decrease in the value of bonds came as traders continued to digest Federal Reserve Chair Jerome Powell's speech at the Jackson Hole economic symposium last Friday.

Powell's remarks were more hawkish than investors would have liked, signaling the Fed is likely to continue raising interest rates aggressively and maintain rates at a high level for an extended period.

The subsequent weakness on Wall Street reflects concerns the Fed's battle against inflation will led to a continued slowdown by the economy.

Trading activity was somewhat subdued, however, as traders looked ahead to Friday's closely watched monthly employment report.

Another relatively light day in terms of economic news may keep traders on the sidelines amid the dog days of August.