Treasuries Rebound Amid Sharp Pullback In Oil Prices

(RTTNews) - Following the pullback seen in the previous session, treasuries moved back to the upside during trading on Monday.

Bond prices moved steadily higher in morning trading before moving roughly sideways in the afternoon. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 3.9 basis points to 1.539 percent.

The rebound by treasuries came amid a sharp pullback by the price of crude oil, with crude for September delivery tumbling $1.47 to $47.05 a barrel.

The price of crude oil has recently benefited from optimism that a meeting of oil-producing nations next month could lead to curtailed production.

Meanwhile, traders continued to express uncertainty about the outlook for interest rates ahead of a speech by Federal Reserve Chair Janet Yellen later in the week.

Yellen is due to speak at the Kansas City Fed's monetary policy symposium in Jackson Hole, Wyoming, on Friday, and traders are likely to keep a close eye on her remarks for clues about the outlook for rates.

Reports on durable goods orders, second quarter GDP, and new and existing home sales are also likely to attract attention in the coming days.

Trading on Tuesday may be impacted by reaction to the Commerce Department's report on new home sales in the month of July.

Bond traders are also likely to keep an eye on the Treasury Department's auction of $26 billion worth of two-year notes.