Treasuries Close Modestly Higher After Quiet Session

(RTTNews) - Following the sharp pullback seen in the previous session, treasuries moved modestly higher over the course of the trading day on Monday.

Bond prices climbed into positive territory after initially showing a lack of direction. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by 1 basis point to 2.257 percent.

The modestly higher close came after treasuries fell sharply last Friday following the release of the Labor Department's better than expected jobs report.

The report said non-farm payroll employment surged up by 209,000 jobs in July after spiking by an upwardly revised 231,000 jobs in June. Economists had expected employment to climb by 183,000 jobs.

The stronger than expected job growth added to optimism about the economy but also raised concerns about the outlook for interest rates.

Trading activity was somewhat subdued, however, with a lack of major U.S. economic data keeping traders on the sidelines.

The economic calendar for this week is relatively quiet, although traders are likely to keep an eye on remarks by several Federal Reserve officials.

Reports on producer and consumer price inflation and labor productivity and costs may also attract some attention in the coming days.

Amid another relatively quiet day on the U.S. economic front, trading on Tuesday may be impacted by reaction to the results of the Treasury Department's auction of $24 billion worth of three-year notes.