Treasuries Close Nearly Flat Following Choppy Trading Day
Treasuries showed a lack of direction over the course of the trading session on Monday before eventually ending the day roughly flat.
Bond prices spent the day bouncing back and forth across the unchanged. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by less than a basis point to 0.637 percent.
The choppy trading on the day came as bond traders seemed content to wait for further developments in the rising tensions between the U.S. and China.
Secretary of State Mike Pompeo claimed on Sunday there was “a significant amount of evidence” that the new coronavirus originated from a laboratory in China.
In response, China’s Global Times said in an editorial that Pompeo was “bluffing” and called on the United States to present its evidence.
The comments from Pompeo come after top White House economic advisor Larry Kudlow told CNBC that China would be “held accountable” for the coronavirus.
President Donald Trump has previously indicated he is considering imposing tariffs on China over its handling of the outbreak.
Meanwhile, traders largely shrugged off a report from the Commerce Department showing new orders for manufactured goods nosedived in the month of March.
The report said factory orders plummeted by 10.3 percent in March after edging down by a revised 0.1 percent in February.
Economists had expected factory orders to plunge by 9.8 percent compared to the unchanged reading originally reported for the previous month.
Trading on Tuesday may be impacted by reports on the U.S. trade deficit and service sector activity, although trading may remain subdued ahead of the closely watched monthly jobs report on Friday.
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