Treasuries Extend Upward Move Seen Last Friday

(RTTNews) - Treasuries showed a notable move to the upside over the course of the trading day on Monday, extending the upward move seen in the previous session.

Bond prices moved higher in morning trading and remained firmly positive throughout the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 5.4 basis points to 2.374 percent.

The continued strength among treasuries came amid multiple reports President Donald Trump intends to nominate Federal Reserve Governor Jerome Powell to replace current Fed Chair Janet Yellen.

The nomination of Powell would purportedly provide continuity at the Fed, as he has previously supported Yellen's general direction in setting monetary policy.

Trump plans to announce his nominee as the next Fed Chair on Thursday, White House officials have told the media.

On the U.S. economic front, the Commerce Department released a report showing personal income rose in line with economist estimates in the month of September, while personal spending jumped more than expected.

The report said personal income climbed by 0.4 percent in September after edging up by 0.2 percent in August. The increase in income matched economist estimates.

The Commerce Department also said personal spending surged up by 1.0 percent in September following a 0.1 percent uptick in August. Economists had expected spending to increase by 0.8 percent.

Trading on Tuesday may be impacted by reaction to reports on home prices, consumer confidence, and Chicago-area business activity.