Treasuries Finish Lackluster Session Modestly Lower
Treasuries showed a lack of direction over the course of the trading session on Monday before eventually closing modestly lower.
Bond prices moved to the downside going into the close of trading. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2 basis points to 0.749 percent.
The lower close by treasuries came as traders reacted to the latest news on the coronavirus front, with White House health advisor Dr. Anthony Fauci expressing “cautious optimism” the outbreak is slowing down in an interview with CNN on Sunday.
Fauci noted that hospitalizations and intensive care admissions in the New York metropolitan area have not only flattened but stated to turn the corner.
“So, that’s where we’re hopeful. And it’s cautious optimism that we’re seeing that decrease,” Fauci said. “And if you look at the patterns of the curves in other countries, once you turn that corner, hopefully, we will see a very sharp decline.”
At the same time, Fauci cautioned that reopening the country will not be like flipping a light switch and will depend on the situation in different parts of the country.
New York Governor Andrew Cuomo also recently suggested that “the worst is over” if people “continue to be smart going forward.”
“We’re controlling the spread,” Cuomo said at a press conference on Monday. “The worst can be over, and is over, unless we do something reckless.”
Overall trading activity was somewhat subdued, however, with a lack of major U.S. economic data keeping some traders on the sidelines along with holidays overseas.
On Tuesday, the Labor Department is scheduled to release its report on import and export prices in the month of March.
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