Following the sell-off seen last Friday, treasuries saw some further downside during the trading session on Monday.
Bond prices initially came under pressure and continued lower throughout the trading day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 4.2 basis points to 2.937 percent.
The continued weakness among treasuries came as traders continued to react to the release of better than expected employment data last Friday.
The Labor Department said non-farm payroll employment surged up by 223,000 jobs in May after climbing by a downwardly revised 159,000 jobs in April.
Economists had expected employment to increase by 188,000 jobs compared to the addition of 164,000 jobs originally reported for the previous month.
With the stronger than expected job growth, the unemployment rate edged down to 3.8 percent in May from 3.9 percent in April. The unemployment rate had been expected to come in unchanged.
The modest decrease pulled the unemployment rate down to its lowest level since a matching rate in April of 2000.
Meanwhile, traders have largely shrugged off a report from the Commerce Department showing a bigger than expected pullback in factory orders in the month of April.
The Commerce Department said factory orders fell by 0.8 percent in April after spiking by an upwardly revised 1.7 percent in March.
Economists had expected factory orders to drop by 0.5 percent compared to the 1.6 percent jump originally reported for the previous month.
Trading on Tuesday may be impacted by reaction to the Institute for Supply Management's report on service sector activity in the month of May.
The ISM's non-manufacturing index is expected to rise to 57.5 in May from 56.8 in April, with a reading above 50 indicating growth in the service sector.
by P2PNews Staff Writer