2019.10.2819:20:00UTC+00Treasuries Show Another Notable Move To The Downside

After coming under pressure over the course of the previous session, treasuries showed another notable move to the downside during trading on Monday.

Bond prices moved notably lower early in the day and remained firmly negative throughout the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 5.2 basis points to 1.853 percent.

The ten-year yield closed higher for the third consecutive session, ending the day at its highest closing level in well over a month.

The continued weakness among treasuries came amid optimism about U.S.-China trade talks as well as news that the European Union has granted the U.K.'s request for a Brexit deadline extension.

The move by the EU, which delays Brexit until January 31st, was widely expected but still removes the risk of a damaging no-deal split on Thursday.

Strength among stocks on Wall Street also reduced the appeal of safe havens like bonds, with the S&P 500 reaching a new record high.

Stocks benefited from the geopolitical developments as well as news on the merger-and-acquisition front and largely upbeat earnings news.

Following a quiet day on the U.S. economic front, trading on Tuesday may be impacted by reaction to reports on consumer confidence and pending home sales.

However, trading activity may be somewhat subdued as traders look ahead to the Federal Reserve's monetary policy decision on Wednesday.

CME Group's FedWatch Tool is currently indicating a 95.1 percent chance that the Fed will cut interest rates by another 25 basis points.