Following the notable pullback seen last Friday, treasuries showed a moderate move back to the upside during trading on Monday.
Bond prices moved higher in early trading and managed to remain in positive territory throughout the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, dipped 2.5 basis points to 2.058 percent.
The rebound by treasuries came as traders looked ahead to the Federal Reserve’s monetary policy announcement on Wednesday.
The Fed is widely expected to leave interest rates unchanged, but traders will be keeping a close eye on the accompanying statement.
A slew of economic data is also scheduled to be released this week, including reports on durable goods orders, third quarter GDP, and personal income and spending.
The Commerce Department released a report this morning showing that new home sales fell by much more than expected in the month of September.
The report said new home sales tumbled 11.5 percent to an annual rate of 468,000 in September from the revised August rate of 529,000.
Economists had expected new home sales to edge down just 0.5 percent to a rate of 549,000 from the 552,000 originally reported for the previous month.
Trading on Tuesday may be impacted by reports on durable goods orders, home prices, and consumer confidence, although activity may be subdued as the Fed’s two-day meeting gets underway.
The material has been provided by InstaForex Company – www.instaforex.com