Treasuries See Further Downside Following Last Friday's Sell-Off

(RTTNews) - Following the significant sell-off seen during last Friday's session, treasuries saw some further downside during trading on Monday.

Bond prices came under pressure early in the day and remained firmly negative throughout the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 3.9 basis points to 4.469 percent.

The ten-year yield added to 14.9 basis point spike seen last Friday, bouncing further off the two-month closing low set last Thursday.

The continued weakness among treasuries came as traders looked ahead to several key events later this week, including the Federal Reserve's monetary policy meeting.

The Fed is due to announce its latest monetary policy decision on Wednesday, when the central bank is widely expected to leave interest rates unchanged.

Since the decision is largely seen as a foregone conclusion, traders are likely to pay closer attention to Fed officials' latest projections for the economy and rates.

Ahead of the Fed announcement, the Labor Department is scheduled to release its report on consumer price inflation in the month of May.

Economists currently expect consumer prices to inch up by 0.1 percent in May after climbing by 0.3 percent in April, while core consumer prices, which exclude food and energy prices, are expected to increase by 0.3 percent for the second straight month.

The annual rate of growth by consumer prices is expected to come in unchanged at 3.4 percent, but the annual rate of core consumer price growth is expected to slow to 3.5 percent in May from 3.6 percent in April.

Reports on producer prices, import and export prices and consumer sentiment and inflation expectations may also attract attention later in the week.