Treasuries Move To The Downside Amid Uptick On Wall Street

(RTTNews) - Treasuries fluctuated over the course of a slightly shortened trading session on Monday before ending the day firmly in negative territory.

After recovering from early weakness, bond prices moved back to the downside over the course of the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 3.9 basis points to 3.858 percent.

With the increase on the day, the ten-year yield reached its highest closing level in almost four months.

The weakness among treasuries came as stocks on Wall Street moved modestly higher amid choppy trading, with the Nasdaq and the S&P 500 reaching their best closing levels in over a year.

On the U.S. economic front, the Institute for Supply Management released a report showing manufacturing activity unexpectedly contracted at a slightly faster rate in the month of June.

The ISM said its manufacturing PMI edged down to 46.0 in June from 46.9 in May, with a reading below 50 indicating contraction. The dip surprised economists, who had expected the index to inch up to 47.2.

A separate report released by the Commerce Department showed U.S. construction spending climbed by more than expected in the month of May, although the advance came following a notably downwardly revised increase in April.

When trading resumes following the 4th of July holiday, the focus will shift to the minutes of the latest Federal Reserve meeting along with the Labor Department's closely watched monthly jobs report.