After moving modestly higher in early trading on Monday, treasuries pulled back over the course of the session to end the day roughly flat.
Bond prices bounced back and forth across the unchanged line going into the close. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by less than a basis point to 2.18 percent.
The nearly flat close by treasuries came as traders looked ahead to the Federal Reserve’s two-day monetary policy meeting later this week.
The Fed is scheduled to announce its policy decision Thursday afternoon, although analysts remain split regarding whether the central bank will raise interest rates.
While upbeat economic data points to the first rate hike in nearly a decade, the recent market volatility and concerns about developing economies may keep the Fed on hold.
Ahead of the meeting, traders are likely to keep an eye on key reports on retail sales, industrial production, consumer prices, and housing starts, which could impact the Fed’s decision.
There were no major U.S. economic reports due to be released today, however, keeping some traders on the sidelines.
Over the weekend, China released some disappointing data, leading to speculation that the Chinese government may provide additional stimulus.
Trading on Tuesday may be impacted by reaction to reports on retail sales, industrial production, and New York manufacturing activity.
The material has been provided by InstaForex Company – www.instaforex.com