Treasuries Show Notable Upward Move Amid Light Trading

(RTTNews) - After ending last Friday's roughly little changed, treasuries showed a strong move to the upside in a slightly abbreviated trading session on Monday.

Bond prices moved steadily higher over the course of the trading day before closing firmly in positive territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 5 basis points to 2.686 percent.

With the notable decrease on the day, the ten-year yield dropped to its lowest closing level in eleven months.

The ten-year yield has trended lower for much of the past two months but still climbed by about 28 basis points for the year.

Treasuries benefited from their appeal as a safe haven going into the new year amid the ongoing government shutdown in the U.S. and lingering concerns about the global economy.

Trading activity remained somewhat subdued, however, as many traders were away from their desks ahead of the New Year's Day holiday on Tuesday.

Bond traders largely shrugged off comments from President Donald Trump expressing optimism about a U.S.-China trade deal.

In a post on Twitter on Saturday, Trump he had a "long and very good" telephone call with Chinese President Xi Jinping.

"Deal is moving along very well," Trump tweeted. "If made, it will be very comprehensive, covering all subjects, areas and points of dispute. Big progress being made!"

Despite Trump's optimism about the potential for a long term trade deal between the world's two largest economies, traders remain skeptical.

Following the holiday on Tuesday, trading activity is likely to remain relatively light on Wednesday amid another quiet day on the U.S. economic front.