2019.04.2215:20:00UTC+00Treasuries Move Back To The Downside

Treasuries showed a notable move back to the downside during the trading session on Monday, offsetting the strength seen last Thursday.

Bond prices came under pressure early in the session and saw some further downside as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 3 basis points to 2.590 percent.

The pullback by treasuries came as traders returned to their desks following the long holiday weekend, shrugging off uncertainty about the slew of corporate results due to be released this week.

Trading activity remained somewhat subdued, however, as the Easter Monday holiday overseas kept some traders on the sidelines.

On the U.S. economic front, the National Association of Realtors released a report showing a significant pullback in existing home sales in the month of March.

NAR said existing home sales plunged by 4.9 percent to an annual rate of 5.21 million in March after soaring by 11.2 percent to a revised rate of 5.48 million in February.

Economists had expected existing home sales to tumble by 3.8 percent to a rate of 5.30 million from the 5.51 million originally reported for the previous month.

The bigger than expected pullback came after existing home sales reached their highest level in almost a year in February.

"It is not surprising to see a retreat after a powerful surge in sales in the prior month," said NAR chief economist Lawrence Yun. "Still, current sales activity is underperforming in relation to the strength in the jobs markets."

On Tuesday, the Commerce Department is scheduled to release a separate report on new home sales in the month of March.

New home sales are expected to drop to an annual rate of 650,000 in March after jumping to a rate of 667,000 in February.

Bond traders are also likely to keep an eye on the results of the Treasury Department's auction of $40 billion worth of two-year notes.