2020.08.2419:32:00UTC+00Treasuries Close Roughly Flat After Seeing Early Strength

After moving modestly higher early in the session, treasuries gave back ground over the course of the trading day on Monday.

Bond prices pulled back off their early highs before ending the session little changed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by less than a basis point to 0.646 percent after hitting a low of 0.622 percent.

The roughly flat close by treasuries came as traders reacted to news regarding a potential coronavirus treatment and vaccine.

The Food and Drug Administration announced Sunday that it has issued an emergency use authorization for investigational convalescent plasma for the treatment of COVID-19 in hospitalized patients.

The FDA concluded convalescent plasma may be effective in treating COVID-19 and that the known and potential benefits of the product outweigh the known and potential risks.

"I am committed to releasing safe and potentially helpful treatments for COVID-19 as quickly as possible in order to save lives, said FDA Commissioner Dr. Stephen Hahn.

He added, "The data from studies conducted this year shows that plasma from patients who've recovered from COVID-19 has the potential to help treat those who are suffering from the effects of getting this terrible virus."

Meanwhile, a report from the Financial Times said the Trump administration is considering fast-tracking an experimental coronavirus vaccine from the U.K. for use in America ahead of the presidential election.

Citing three people briefed on the plan, the FT said one option being explored to speed up the availability of a vaccine would involve the FDA awarding emergency use authorization in October to a vaccine being developed in a partnership between AstraZeneca (AZN) and Oxford University.

Looking ahead, trading on Tuesday may be impacted by reaction to reports on home prices, consumer confidence and new home sales.