Treasuries Show Notable Rebound Following Recent Pullback..
Following the sharp pullback seen over the past few sessions, treasuries showed a strong move back to the upside during trading on Monday.
Bond prices surged in morning trading and remained firmly positive throughout the afternoon. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, tumbled 11 basis points to 2.991 percent.
The ten-year yield gave back ground after spiking by 29.2 basis points over the course of the three previous sessions.
The rebound by treasuries came amid renewed Covid concerns contributed, as Shanghai reported its first case of the highly infectious BA.5 omicron sub-variant, raising fears of more lockdowns.
Macau also closed all its casinos for the first time in over two years on Monday after a coronavirus outbreak in the world's biggest gambling hub.
Treasuries also benefited from weakness on Wall Street, with stocks pulling back sharply after moving to the upside last week.
Bond prices remained firmly positive as the Treasury Department revealed this month's auction of $43 billion worth of three-year notes attracted average demand.
The three-year note auction drew a high yield of 3.093 percent and a bid-to-cover ratio of 2.43, while the ten previous three-year note auctions had an average bid-to-cover ratio of 2.44.
The economic calendar remains quiet on Tuesday, with traders waiting on consumer and producer price inflation, retail sales and industrial production data later this week.
Bond traders are likely to keep an eye on the results of the Treasury Department's auction of $33 billion worth of ten-year notes.