25.03.201915:20:00UTC+00Treasuries Extend Upward Move Amid Economic Worries

Following the considerable strength seen last Friday, treasuries saw some further upside during the trading session on Monday.

Bond prices pulled back well off their best levels going into the close but remained in positive territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 3.5 basis points to 2.420 percent.

With the continued decrease on the day, the ten-year yield once again ended the session at its lowest closing level in well over a year.

Treasuries continued to benefit from their appeal as a safe haven amid concerns about the outlook for the global economy.

The U.S. economy has thus far held up relatively well, although Federal Reserve Chairman Jerome Powell has warned about the negative impact slowing growth in Europe and China will have on the U.S.

Powell's comments came after the Fed revealed that it no longer expects to raise interest rates this year, partly reflecting the central bank's concerns about the economic outlook.

The yield on the ten-year note falling below the yield on three-month bills has added to the economic worries, as an inverted yield curve is seen by many as an indication that a recession is on the way.

Looking ahead, trading on Tuesday may be impacted by reaction to reports on new residential construction and consumer confidence.

Bond traders are also likely to keep an eye on the results of the Treasury Department's auction of $40 billion worth of two-year notes.