Following the pullback seen in the previous session, treasuries showed a lack of direction over the course of the trading day on Monday.
Bond prices bounced back and forth across the unchanged line before closing nearly flat. As a s result, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by less than a basis point to 1.363 percent.
A lack of major U.S. economic data may have kept traders on the sidelines ahead of the release of reports on consumer and producer price inflation, industrial production and retail sales in the coming days.
Congressional testimony by Federal Reserve Chair Jerome Powell is also likely to attract attention along with the Fed’s Beige Book.
Meanwhile, the Treasury Department revealed that this month’s auctions of $58 billion worth of three-year notes and $38 billion worth of ten-year notes both attracted average demand.
Looking ahead, the Treasury is due to announce the result of its auction of $24 worth of thirty-year bonds on Tuesday.
Trading on Tuesday may also be impacted by reaction to the Labor Department’s report on consumer price inflation in the month of June.