Following the rally seen over the course of the previous session, treasuries showed a notable move back to the downside during trading on Monday.<\/p>\n
Bond prices came under pressure early in the session and remained firmly negative throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 6.2 basis points to 4.288 percent.<\/p>\n
The increase came after the ten-year yield tumbled by 12.6 basis points to its lowest closing level in three months last Friday.<\/p>\n
Treasuries moved back to the downside as some traders cashed in on the recent strength in the markets<\/span>, which came amid optimism about the outlook for interest rates.<\/p>\n The Federal Reserve is widely expected to leave rates unchanged in the coming months before cutting rates as early as March 2024.<\/p>\n Meanwhile, traders are also looking ahead to the release of the Labor Department’s closely watched monthly jobs report on Friday.<\/p>\n Economists currently expect employment to increase by 180,000 jobs in November after rising by 150,000 jobs in October, while the unemployment rate is expected to hold at 3.9 percent.<\/p>\n “Another weaker report, especially one paired with 0.2% monthly wage growth, could further fuel the belief that not only is the tightening cycle over but rate cuts may not be far away,” said Craig Erlam, Senior Market Analyst, UK & EMEA, OANDA.<\/p>\n The Commerce Department released a report this morning showing factory orders pulled back by much more than expected in the month of October.<\/p>\n The report said factory orders plunged by 3.6 percent in October after jumping by a downwardly revised 2.3 percent in September.<\/p>\n Economists had expected factory orders to tumble by 2.6 percent compared to the 2.8 percent surge originally reported for the previous month.<\/p>\n A report on service sector activity may attract attention on Tuesday, with the pace of growth in the sector expected to show a slight acceleration in the month of November. <\/p>\n