Treasuries showed a notable move to the downside during trading on Monday, more than offsetting the uptick seen last Friday.
Bond prices moved modestly lower early in the session and slid more firmly into negative territory as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 6 basis points to 0.656 percent.
The weakness among treasuries came after New York Governor Andrew Cuomo announced plans for a phased reopening of his state’s economy.
Cuomo suggested the first phase, which involves “low risk” businesses in the manufacturing and construction sectors, could begin shortly after New York’s stay-at-home order expires on May 15.
The decision to announce the reopening plans comes as New York has seen as steady decline in coronavirus hospitalization rates, with Cuomo expressing optimism the worst is over.
“The numbers are on the decline. Everything we have done is working,” Cuomo said during a press briefing on Sunday, “There’s no doubt that we’ve gone at this point through the worst. And as long as we act prudently going forward, the worst should be over.”
The announcement by Cuomo comes as other states, including several led by Republican governors, have already started reopening their economies.
Optimism about additional stimulus ahead of Federal Reserve and European Central Bank meetings later this week also reduced the appeal of safe havens like bonds.
Earlier today, the Bank of Japan expanded its monetary stimulus for the second straight month to support economic and financial activities amid the coronavirus pandemic.
Meanwhile, traders largely shrugged off the results of the Treasury Department’s auctions of two-year and five-year notes, which both attracted below average demand.
A report on consumer confidence may attract some attention on Tuesday, although traders are likely to remain focused on news on the coronavirus front.
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