Treasuries Show Notable Pullback Amid Rally On Wall Street

(RTTNews) - Treasuries pulled back rather sharply during trading on Monday following the strength seen in the two previous sessions.

Bond moves moved higher in early trading and saw further upside as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 6.3 basis points to 2.238 percent.

The pullback by treasuries came amid a rally on Wall Street, with stocks benefiting from bargain hunting and optimism about the situation in Greece.

Greece's finance minister reportedly hopes to conclude negotiations on a third bailout deal by early Tuesday to prevent the country from defaulting on bond payments owed to the European Central Bank.

Treasuries were also pressured by comments from Atlanta Federal Reserve President Dennis Lockhart, who said the central bank is "close" to raising interest rates.

"I think the point of 'liftoff' is close," Lockhart said in a speech to the Atlanta Press Club. "The economy has made great gains and is approaching an acceptable normal ... conditions are no longer extraordinary."

"Compared to earlier in the year, we know a lot more and can shelve some concerns," he added. "We are getting closer and closer to what feels like a healed state."

Trading activity was somewhat subdued, however, as a lack of major U.S. economic data kept some traders on the sidelines.

Looking ahead to Tuesday, trading may be impacted by reaction to reports on labor productivity and wholesale inventories.