Following the downturn observed in last Friday's session, treasury securities experienced further decline in Monday's trading.
Bond prices trended lower in the morning and sustained a negative trajectory throughout the afternoon. Consequently, the yield on the benchmark ten-year note, which inversely relates to its price, rose by 4.6 basis points to 4.278 percent.
This increase marks the ten-year yield's highest closing level in three months.
Ongoing concerns regarding the outlook for interest rates weighed heavily on treasuries ahead of the upcoming Federal Reserve monetary policy meeting set for early November.
While there is a broad expectation that the Fed will lower interest rates by an additional quarter point next month, the CME Group's FedWatch Tool suggests nearly a 30 percent probability that the central bank might maintain current rates in December.
Recent positive U.S. economic data and statements from Fed officials have sparked concerns that rate reductions might proceed more gradually than previously anticipated.
Traders are also anticipating the release of significant U.S. economic data later in the week.
The monthly employment report, alongside a personal income and spending report that features the Federal Reserve's preferred inflation indicators, is likely to capture significant attention.
Reports covering third-quarter GDP, consumer confidence, pending home sales, and manufacturing sector activity may also garner interest.
The upcoming data could influence the economic outlook and expectations for the pace at which the Fed may reduce interest rates.
Tuesday’s trading could be swayed by responses to the latest U.S. economic data, especially reports on consumer confidence and job openings.
