2019.07.1515:16:00UTC+00Treasuries Show Modest Move To The Upside

After turning higher over the course of the previous sessions, treasuries saw some further upside during the trading day on Monday.

Bond prices moved modestly higher in morning trading and managed to cling to slim gains going into the close. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by 1.4 basis points to 2.092 percent.

The uptick by treasuries came as some traders looked to bonds as a safe haven as they wait for corporate earnings season to pick up steam.

Financial giant Citigroup (C) got earnings season off to a positive start with better than expected second quarter results, although a slew of other big-name companies are due to report in the coming days.

Goldman Sachs (GS), Johnson & Johnson (JNJ), JPMorgan (JPM), Kraft Heinz (KHC), IBM (IBM), Microsoft (MSFT), and America Express (AXP) are among the companies due to report their results this week.

On the U.S. economic front, the Federal Reserve Bank of New York released a report before the start of trading showing regional manufacturing activity rebounded modestly in the month of July.

The New York Fed said its general business conditions index climbed to 4.3 in July from a negative 8.6 in June, with a positive reading indicating growth in regional manufacturing activity. Economists had expected the index to rise to a positive 2.0.

The bigger than expected rebound by the general business conditions index came after it recorded its first negative reading in over two years in the previous month.

Trading on Tuesday may be impacted by reaction to reports on retail sales, industrial production, and homebuilder confidence.