Treasuries Climb Off Worst Levels But Still Close Lower
(RTTNews) - After ending the previous session modestly lower, treasuries saw some further downside during the trading day on Monday.
Bond prices climbed off their worst levels after seeing initial weakness but remained in negative territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 1.7 basis points to 0.761 percent.
The weakness among treasuries came as traders remain persistently optimistic that lawmakers in Washington will ultimately agree on a new stimulus bill.
In a post on Twitter, House Speaker Nancy Pelosi's deputy chief of staff Drew Hammill revealed that the Democratic leader spoke with Treasury Secretary Steven Mnuchin for just over an hour on Saturday.
"While there was some encouraging news on testing, there remains work to do to ensure there is a comprehensive testing plan that includes contact tracing and additional measures to address the virus' disproportionate impact on communities of color," Hammill tweeted.
Hammill said that there remains an array of additional differences that must be addressed in a comprehensive manner in the next 48 hours.
"Decisions must be made by the White House in order to demonstrate that the Administration is serious about reaching a bipartisan agreement that provides for Americans with the greatest needs during the pandemic," Hammill said.
On the U.S. economic front, homebuilder confidence climbed to another new record high in the month of October, according to a report released by the National Association of Home Builders.
The report said the NAHB/Wells Fargo Housing Market Index rose to 85 in October from 83 in September. Economists had expected the index to come in unchanged.
"Traffic remains high and record-low interest rates are keeping demand strong as the concept of 'home' has taken on renewed importance for work, study and other purposes in the Covid era," said NAHB Chairman Chuck Fowke.
He added, "However, it is becoming increasingly challenging to build affordable homes as shortages of lots, labor, lumber and other key building materials are lengthening construction times."
On Tuesday, the Commerce Department is scheduled to release its report on new residential construction in the month of September.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.