Treasuries Give Back Ground After Seeing Initial Strength
(RTTNews) - After showing an initial move to the upside, treasuries gave back ground over the course of the trading session on Monday.
Bond prices pulled back well off their best levels but still managed to close slightly higher. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by less than a basis point to 0.620 percent after hitting a low of 0.602 percent.
The initial strength among treasuries came amid reports European Union leaders are at an impasse over a new 750 billion euro stimulus package.
The main division is between countries hit hardest by the coronavirus and some EU members seeking to limit the size of the fund and stricter controls on its use.
After three days of haggling, Dutch Prime Minister Mark Rutte admitted leaders were "close to failure" and warned talks could still "fall apart."
However, the appeal of safe havens like bonds was partly offset by positive results from trials of experimental COVID-19 vaccines by Oxford University and AstraZeneca (AZN) and Pfizer (PFE) and BioNTech (BNTX).
The positive news on the vaccine front comes as some states continue to see spikes in coronavirus cases, with Florida reporting 12,523 new cases on Saturday, reflecting the fifth consecutive day the state reported more than new 10,000 infections.
A lack of major U.S. economic data may also have kept traders on the sidelines as they wait for more upbeat news to support optimism about a recovery.
The economic calendar remains quiet on Tuesday, although the weekly jobless claims report as well as data on new and existing home sales are likely to attract attention in the coming days.
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