(RTTNews) - After trending higher over the past few sessions, treasuries gave back some ground during the trading day on Monday.
Bond prices moved to the downside early in the session and remained stuck in negative territory throughout the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.7 basis points to 0.563 percent.
With the increase on the day, the ten-year yield rebounded after ending last Friday's trading at its lowest closing level in well over four months.
The initial weakness among treasuries came as upbeat readings on manufacturing in China and Europe reduced the appeal of safe havens like bonds.
Treasuries remained firmly negative as the Institute for Supply Management released a report showing a bigger than expected acceleration in the pace of growth in U.S. manufacturing activity in the month of July.
The ISM said its purchasing managers index rose to 54.2 in July from 52.6 in June, with a reading above 50 indicating growth in manufacturing activity. Economists had expected the index to inch up to 53.6.
"In July, manufacturing continued its recovery after the disruption caused by the coronavirus (COVID-19) pandemic," said Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee.
He added, "Panel sentiment was generally optimistic (two positive comments for every one cautious comment), continuing a trend from June."
With the bigger than expected increase, the purchasing managers index reached its highest level of expansion since March of 2019.
A report on factory orders in the month of June may attract some attention on Tuesday but is more likely to be viewed as old news.
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