2017.11.2015:21:00UTC+00Treasuries Close Modestly Lower After Seeing Initial Strength

Treasuries turned modestly lower over the course of the trading session on Monday after showing an initial move to the upside.

Bond prices pulled back into negative territory early in the session and saw further downside as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged up by 1.8 basis points to 2.372 percent.

The lower close by treasuries came following the release of a report from the Conference Board showing a much bigger than expected jump by its index of leading U.S. economic indicators.

The Conference Board said its leading economic index surged up by 1.2 percent in October after inching up by a revised 0.1 percent in September.

Economists had expected the index to climb by 0.6 percent compared to the 0.2 percent drop originally reported for the previous month.

"The growth of the LEI, coupled with widespread strengths among its components, suggests that solid growth in the US economy will continue through the holiday season and into the new year," said Ataman Ozyildirim, Director of Business Cycles and Growth Research at the Conference Board.

The much bigger than expected increase by the leading economic index reflected positive contributions from nine of the ten indicators that make up the index.

Trading on Tuesday may be impacted by reaction to the National Association of Realtors' report on existing home sales in the month of October. Existing home sales are expected to climb by 0.7 percent.