24.06.201915:17:00UTC+00Treasuries Show Notable Move Back To The Upside

Following the pullback seen in the previous session, treasuries showed a notable move back to the upside during trading on Monday.

Bond prices moved notably higher in morning trading and remained firmly positive throughout the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, slid 4.7 basis points to 2.021 percent.

Treasuries benefited from their appeal as a safe haven amid uncertainty ahead of the highly anticipated G20 summit in Osaka, Japan, later this week.

U.S. President Donald Trump and Chinese President Xi Jinping are scheduled to meet during the summit in an effort to kick start stalled trade negotiations.

Traders also looked to the relative safety of bonds amid rising tensions between the U.S. and Iran, with Trump announcing new sanctions on Iran after an unmanned U.S. surveillance drone was recently shot down by Iranian forces.

Trump told reporters at the White House that the U.S. does not seek conflict with Iran but said his administration will continue to increase pressure on Tehran until the regime abandons its dangerous activities.

The executive order signed by the president includes sanctions on Iran's Supreme Leader, Ayatollah Ali Khamenei, as well as the Supreme Leader's Office.

Trading on Wednesday may be impacted by reaction to reports on new home sales and consumer confidence as well as remarks by Fed Chairman Jerome Powell.