Treasuries Move To The Downside After Seeing Early Strength

(RTTNews) - After failing to sustain an early move to the upside, treasuries came under pressure over the course of the trading session on Monday.

Bond prices pulled back well off their early highs and into negative territory as the day progressed. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.0 basis points to 3.857 percent after hitting a low of 3.798 percent.

The downturn by treasuries came as traders looked ahead to the Federal Reserve's monetary policy announcement later this week.

With the Fed widely expected to raise interest rates by another 25 basis point on Wednesday, traders are likely to pay close attention to the accompanying statement for clues about the outlook for rates.

Recent encouraging inflation data has led to optimism this week's rate hike will be the last, and traders will be looking for confirmation from the Fed.

A lack of major U.S. economic data may have kept some traders on the sidelines ahead of the release of several key reports in the coming days.

Looking ahead, trading on Tuesday may be impacted by reaction to reports on home prices in major metropolitan areas and consumer confidence.