Treasuries Give Back Ground Amid Rally On Wall Street

(RTTNews) - Treasuries showed a notable move to the downside during trading on Monday amid a broad based rally on Wall Street.

Bond prices came under pressure in early trading and remained firmly negative throughout the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 4.5 basis points to 1.828 percent.

The pullback by treasuries came as stocks moved sharply higher on news the FBI has once again cleared Democratic presidential nominee Hillary Clinton of criminal charges related to her use of a private email server while Secretary of State.

"Based on our review, we have not changed our conclusions that we expressed in July with respect to Secretary Clinton," FBI Director James Comey wrote in a letter sent to members of Congress on Sunday.

Late last month, Comey revealed that the FBI re-opened its probe of Clinton after learning of the existence of new emails on a device obtained in connection with an unrelated investigation.

U.S. officials familiar with the case told the Washington Post the new emails were either personal or duplicative of those found earlier.

The news that Clinton has been cleared for a second time is seen as boosting her chances of emerging victorious on Election Day on Tuesday, which could be a positive for stocks.

JPMorgan analysts predicted the S&P 500 would jump by 3 percent from last Friday's close if Clinton wins the election.

Trading activity may be somewhat subdued on Tuesday as traders await the outcome of the U.S. elections. A lack of major U.S. economic data may also keep some traders on the sidelines.

Bond trading could be impacted by reaction to the results of the Treasury Department's auction of $24 billion worth of three-year notes.