Treasuries Extend Downward Trend After Last Friday's Jobs Report

(RTTNews) - Treasuries initially showed a lack of direction but slid firmly into negative territory as the trading day progressed on Monday.

Bond prices came under pressure in morning trading and remained stuck in the red throughout the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.7 basis points to 1.317 percent.

The ten-year yield closed higher for the fifth consecutive sessions after ending last Monday's trading at its lowest closing level in almost four months.

The continued weakness among treasuries came following last Friday's closely watched monthly employment report, which showed stronger than expected job growth in the month of July.

The jobs report added to economic optimism and also raised concerns about the outlook for monetary policy, reducing the appeal of treasuries.

Later this week, reports on consumer and producer price inflation may also impact forecasts for when the Federal Reserve will begin scaling back its asset purchases.

Trading activity may be somewhat subdued on Tuesday as traders wait for the reading on consumer price inflation on Wednesday.

Bond traders are still likely to keep an eye on the results of the Treasury Department's auction of $58 billion worth of three-year notes.