Treasuries Give Back Ground Amid Easing Geopolitical Concerns

(RTTNews) - Treasuries moved lower over the course of the trading day on Monday, giving back some ground after turning in a strong performance last week.

Bond prices moved steadily lower as the day progressed before closing firmly in negative territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 4.2 basis points to 2.387 percent.

With the increase on the day, the ten-year yield climbed off the one-year closing low that it set last Friday.

The pullback by treasuries was partly due to easing geopolitical concerns amid news that officials from Ukraine and Russia met to discuss a possible truce.

Ukrainian Foreign Minister Pavlo Klimkin met his Russian counterpart Sergei Lavrov in Berlin, with Klimkin saying the talks had brought "moderate progress."

On the U.S. economic front, the National Association of Home Builders released a report showing an unexpected improvement in homebuilder confidence in the month of August.

The report said the NAHB/Wells Fargo Housing Market Index climbed to a reading of 55 in August from 53 in July. Economists had expected the index to come in unchanged compared to the previous month.

With the unexpected increase, the housing market index rose to its highest level since reaching a reading of 56 in January.

Development overseas may continue to impact trading on Tuesday, although traders are also likely to keep eye on reports on housing starts and consumer price inflation.