Treasuries moved modestly higher during trading on Monday, extending the rebound seen over the course of the previous session.
Bond prices moved to the upside early in the session and remained positive throughout the rest of the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, dipped 2 basis points to 1.635 percent.
The continued recovery by treasuries came as traders picked up bonds at reduced levels following recent weakness, which drove the ten-year yield to a five-month closing high last Thursday.
Trading activity was somewhat subdued, however, as a lack of major U.S. economic data kept some traders on the sidelines.
Some traders may also have been reluctant to make more significant moves ahead of the Federal Reserve’s monetary policy meeting next week.
The Fed is likely to leave interest rates unchanged but could announce plans to begin scaling back its asset purchase program.
Trading on Tuesday may be impacted by reaction to reports on home prices, new home sales and consumer confidence.
Bond traders are also likely to keep an eye on the results of the Treasury Department’s auction of $60 billion worth of two-year notes.