After moving sharply higher over the past few sessions, treasuries showed a significant pullback during trading on Monday.
Bond prices came under pressure early in the session and saw further downside as the day progressed. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 10.4 basis points to 4.662 percent.
The pullback by treasuries came as traders cashed in on the recent strength in the bond markets, which pushed the ten-year yield down to its lowest levels in a month.
Treasuries have recently benefited from optimism the Federal Reserve is done raising interest rates following last week's monetary policy announcement combined with softer than expected jobs data.
CME Group's FedWatch Tool currently indicates the Fed is likely to leave rates unchanged in the coming months until potentially cutting rates in mid-2024.
Treasuries moved back to the downside despite a lack of major U.S. economic data, with the economic calendar remaining relatively light throughout the week.
Several Fed officials, including Fed Chair Jerome Powell, are due to speak in the coming days, while traders are also likely to keep an eye on reports on the U.S. trade deficit, initial jobless claims and consumer sentiment.
