Treasuries showed a notable move to the upside during trading on Monday, offsetting the weakness seen in the two previous sessions.
Bond prices moved higher in early trading and remained firmly positive throughout the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 7.4 basis points to 2.059 percent.
The strength among treasuries came as traders continued to digest last Friday’s news that Greece reached a deal with eurozone creditors to extend its bailout agreement for four months.
A statement from the Eurogroup said the extension will give negotiators time to work out a possible follow-up arrangement.
As part of the agreement, Greece is required to submit a list of reform measures, although officials said the government will miss a Monday deadline and send the list tomorrow morning.
Treasuries also benefited from the release of a report from the National Association of Realtors showing a bigger than expected drop in existing home sales in the month of January.
NAR said existing home sales tumbled 4.9 percent to an annual rate of 4.82 million in January from an upwardly revised 5.07 million in December. Economists had expected existing home sales to fall to a rate of 4.95 million.
With the bigger than expected decrease, existing home sales fell to their lowest rate since hitting 4.75 million last April.
Federal Reserve Chair Janet Yellen is likely to take the spotlight on Tuesday, as the central bank chief is due to testify before the Senate Banking Committee.
Yellen’s remarks are likely to be closely analyzed for hints about the outlook for interest rates.
The material has been provided by InstaForex Company – www.instaforex.com