After ending last Friday’s trading nearly unchanged, treasuries moved to the downside during the trading session 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, rose by 4.2 percent to 1.596 percent.
With the increase on the day, the ten-year yield ended the session at its highest closing level in over a year.
The drop by treasuries came in reaction to news the Senate voted along party lines on Saturday to approve a new $1.9 trillion coronavirus relief bill.
The bill, which includes $1,400 direct payments and an extension of unemployment benefits, is expected to be approved by the House later this week.
On the U.S. economic front, a report released by the Commerce Department showed wholesale inventories in the U.S. jumped in line with economist estimates in the month of January.
The Commerce Department said wholesale inventories spiked by 1.3 percent in January after climbing by an upwardly revised 0.6 percent in December.
Economists had expected wholesale inventories to surge up by 1.3 percent compared to the 0.3 percent increase originally reported for the previous month.
Amid a quiet day on the U.S. economic front, trading on Tuesday may be impacted by reaction to the results of the Treasury Department’s three-year note auction.
The material has been provided by InstaForex Company – www.instaforex.com