Treasuries Close Modestly Higher But Off Best Levels Of The Day

(RTTNews) - After showing a notable upward move in early trading on Monday, treasuries gave back some ground over the course of the session but still closed modestly higher.

Bond prices moved roughly sideways going into the close, hovering just above the unchanged line. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by 1.4 basis points to 2.491 percent.

The early strength among treasuries extended the notable upward move seen last Friday, which came following the release of the July jobs report.

The Labor Department said non-farm payroll employment increased by 209,000 jobs in July, but the job growth fell short of the increase of 233,000 jobs expected by economists.

The report also showed an uptick in the unemployment rate and only slight wage growth, easing some of the recent concerns about the outlook for interest rates.

However, while the receding rate worries generated some continued buying interest, trader seemed reluctant to make significant moves amid a lack of major U.S. economic data.

Following the slew of economic data that was released last week, the economic calendar for the unfolding week is relatively quiet.

Notable strength that emerged on Wall Street subsequently helped to pull treasuries down off their best levels as the day progressed.

Trading on Tuesday may be impacted by the release of a pair of economic reports on service sector activity and factory orders.