Treasuries Close Slightly Lower Following Choppy Trading Day

(RTTNews) - After pulling back sharply over the two previous sessions, treasuries showed a lack of direction during trading on Monday.

Bond prices spent the day bouncing back and forth across the unchanged line before closing modestly lower. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price inched up by 1.3 basis points to 2.43 percent.

The choppy trading came as traders digested the news that Greece and its international creditors have finally reached an agreement on a new bailout for the debt-laden country.

After hours of negotiations, Greece and its creditors reached a conditional agreement that consists of several tough austerity measures.

European Council President Donald Tusk said the agreement comes with strict conditions but places Greece on a path of growth and helps regain trust.

"We had only one objective: to reach an agreement." Tusk said in a press conference. "After 17 hours of negotiations, we have finally reached it. One can say that we have 'agreekment.'"

He added, "Leaders have agreed in principle that they are ready to start negotiations on an [European Stability Mechanism] program, which in other words means continued support for Greece."

The news was already partly priced in by the bond markets, with optimism about a potential deal contributing to the steep drop seen late last week.

Nonetheless, the news may allow traders to take a break from scrutinizing the constantly shifting situation in Greece and focus on upcoming U.S. economic reports on retail sales, inflation, and housing.

Federal Reserve Chair Janet Yellen's semi-annual congressional testimony is also likely to attract attention this week.

On Tuesday, traders are likely to keep a close eye on the Commerce Department's report on retail sales in the month of June. Economists expect sales to rise by 0.3 percent.