Treasuries Close Moderately Lower Amid Optimism About Greece

(RTTNews) - After closing roughly flat in each of the two previous sessions, treasuries moved moderately lower during trading on Monday.

Bond prices moved to the downside in early trading and remained stuck in the red throughout the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.3 basis points to 2.372 percent.

The weakness among treasuries was partly due to a continued easing of concerns about Greece, which re-opened its banks and started the process of paying back its international creditors.

Capital controls remain in place, but Greeks can now withdraw up to 420 euros a week as opposed to the previous withdrawal limit of 60 euros per day.

Comments from St. Louis Federal Reserve President James Bullard also weighed on treasuries, as he told Fox Business News there is a better than 50 percent chance the Fed will raise rates in September.

Nonetheless, overall trading activity was somewhat subdued amid a lack of major U.S. economic data on the day.

The economic calendar remains relatively light throughout the week, although reports on weekly jobless claims and new and existing home sales are likely to attract some attention.

Tuesday represents another quiet day on the U.S. economic front, potentially leading to an increased focus on developments overseas.