Treasuries Move Higher Amid Weakness On Wall Street

(RTTNews) - On the heels of the rebound seen in the previous session, treasuries saw some further upside during trading on Monday.

Bond prices moved steadily higher in morning trading before moving roughly sideways in the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of it price, fell by 5 basis points to 2.225 percent.

The continued strength among treasuries came amid a sell-off on Wall Street, with resource stocks leading the way lower amid a drop in commodities prices.

The weakness on Wall Street came amid a sharp drop by the price of crude oil, as crude for January delivery plummeted $2.32 to $37.65 a barrel.

The price of crude oil has fell to its lowest levels in more than six years after OPEC ended its policy meeting without announcing a reduction in production.

Treasuries also benefited from their safe haven appeal due to concerns about the outlook for monetary policy ahead of next week's Federal Reserve meeting.

The Fed is widely expected to announce an increase in interest rates following the meeting, but traders are likely to pay close attention to the wording of the statement.

Fed officials have repeatedly indicated they expect the pace of monetary policy normalization to be gradual due to lingering concerns about the momentum of the U.S. economy.

The economic calendar for this week starts off relatively quiet, although reports on producer prices and retail sales are likely to attract attention later in the week.

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.