Treasuries Show Strong Move Back To The Upside

(RTTNews) - Treasuries showed a strong move to the upside during trading on Monday, regaining ground following the weakness seen last Friday.

Bond prices moved notably higher early in the session and remained firmly positive throughout the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, slid 7.4 basis points to 4.545 percent.

The strength among treasuries may have reflected bargain hunting after the ten-year yield ended Friday's trading above 4.6 percent for the first time since late May.

Treasuries have moved sharply higher in recent weeks due in part to the Federal Reserve forecasting fewer than previously estimated interest rate cuts in 2025.

Worries about the impact President-elect Donald Trump's policies will have on the U.S. budget deficit may also have weighed on treasuries.

In U.S. economic news, a report released by the National Association of Realtors showed pending home sales surged by much more than expected in the month of November.

NAR said its pending home sales index shot up by 2.2 percent to 79.0 in November after jumping by 1.8 percent to 77.3 in October. Economists had expected pending home sales to climb by 0.7 percent.

The pending home sales index increased for the fourth consecutive month, reaching its highest level since February 2023.

A lack of major U.S. economic data may lead to a light trading day on Tuesday, as some traders look to get a head start on their New Year's Eve celebrations.