FX.co ★ Treasuries Close Roughly Flat Following Recent Strength

Treasuries experienced an early rise, followed by fluctuations throughout Monday's trading session, and ultimately ended the day relatively unchanged. The value of bonds remained mostly steady, causing the yield on the benchmark ten-year note to drop slightly by 1.1 basis points to 4.489 percent.

The slight drop in ten-year yields prolonged the gradual decline observed over the past three trading sessions, reaching its lowest closing level in nearly a month. The unexpectedly varied trading throughout the day was attributed to bond traders' hesitance to undertake significant moves due to the absence of major U.S. economic data.

Although there are no significant economic announcements anticipated this week, the preliminary report on consumer sentiment for May, along with various statements by Federal Reserve officials, could influence market trends.

The previous week ended with a solid advance in treasuries following the Federal Reserve's most recent monetary policy announcement. Federal Reserve Chair Jerome Powell's moderately dovish comments, paired with April's slower than expected job growth rates, dismissed initial worries that the Fed might consider raising interest rates.

Instead, investors are increasingly assured of a rate cut in the future, as indicated by the CME Group's FedWatch Tool - it proposes an 83.5 percent likelihood of lower rates by September.