2019.05.2015:19:00UTC+00Treasuries Move Modestly Lower Despite Lingering Trade Concerns

After initially showing a lack of direction, treasuries moved modestly lower over the course of the trading session on Monday.

Bond prices drifted lower as the morning progressed and remained stuck in the red throughout the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price rose by 2.3 basis points to 2.416 percent.

The weakness among treasuries came as bond traders shrugged off concerns about the escalating U.S.-China trade dispute even after Google suspended some of its business with Chinese tech giant Huawei.

Google has cut Huawei off from business involving the transfer of hardware, software and technical services, complying with an order by President Donald Trump blocking the sale or transfer of U.S. technology to Huawei.

"We are complying with the order and reviewing the implications," a Google spokesperson said, noting services such as Google Play and the security protections from Google Play Protect will continue to function on existing Huawei devices.

Trading activity was somewhat, however, with a lack of major U.S. economic data may keeping some traders on the sidelines.

Reports on new and existing home sales and durable goods orders are likely to attract attention in the coming days along with the minutes of the latest Federal Reserve meeting.

News on the trade front is likely to remain in the spotlight on Tuesday, potentially overshadowing a report on existing home sales in the month of April.