After seeing initial strength, treasuries pulled back over the course of the trading session on Monday before closing roughly flat.
Bond prices spent much of the afternoon lingering near the unchanged line. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by less than a basis point to 2.494 percent.
The roughly flat close by treasuries came as traders seemed reluctant to make any significant moves ahead of next week’s Federal Reserve meeting.
The Fed is widely expected to increase interest rates by a quarter point, with CME Group’s FedWatch tool indicating an 86.4 percent probability of a rate hike.
Traders are also looking ahead to the closely watched monthly jobs report due to be released on Friday. The report is expected to show an increase of about 195,000 jobs in February.
On the economic front, the Commerce Department released a report showing that new orders for manufactured goods increased in line with expectations in the month of January.
The Commerce Department said factory orders climbed by 1.2 percent in January after jumping by 1.3 percent in December. The increase in orders matched economist estimates.
Trading on Tuesday may be impacted by reaction to the Commerce Department’s report on international trade in the month of January.
The U.S. trade deficit is expected to widen to $48.5 billion in January after narrowing to $44.3 billion in December.
Bond traders are also likely to keep an eye on the results of the Treasury Department’s auction of $24 billion worth of three-year notes.
The material has been provided by InstaForex Company – www.instaforex.com
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