Treasury ended Monday with modest losses, as bond investors were caught between a disappointing report on new-home sales and the upcoming Federal Reserve’s policy meeting, at which the U.S. central bank is expected to announce a further move to taper its stimulus program.
At 3 p.m. EST, the benchmark 10-year note edged down 8/32 in price to yield 2.766%. The 30-year bond fell 15/32 in price to yield 3.679%. Bond prices rise when yields fall.
The Treasury market seesawed throughout the trading session. Safe-haven bonds were initially bid up after Asian stock markets posted sharp losses overnight, led by a 2.5% drop in the Nikkei index. But the flight-to-quality trade was somewhat arrested as the U.S. trading session got underway and investors took some profits ahead of the Fed’s policy meeting.