Treasuries moved to the downside during trading on Monday, extending the pullback seen in the previous session.
Bond prices regained some ground after seeing early weakness but remained in negative territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 3.5 basis points to 2.412 percent.
The ten-year yield added to the 5 basis point jump seen last Friday, as traders remain concerned about the Federal Reserve raising interest rates more aggressively than previously expected.
With the strongly monthly jobs report suggesting the economy remains on solid footing, the Fed is seen as increasingly likely to raise interest rates by 50 basis points next month.
CME Group’s Fed Watch tool currently indicates a 74.4 percent chance of a 50 basis point rate hike and a 25.6 percent chance of a 25 basis point increase.
The Fed is scheduled to release the minutes of its March meeting on Wednesday, potentially shedding additional light on the outlook for rates.
In U.S. economic news, a report released by the Commerce Department showed new orders for U.S. manufactured goods decreased in line with economist estimates in the month of February.
The Commerce Department said factory orders fell by 0.5 percent in February after surging by an upwardly revised 1.5 percent in January.
Economists had expected factory orders to decrease by 0.5 percent compared to the 1.4 percent jump originally reported for the previous month.
Trading on Tuesday may be impacted by reaction to the latest reports on the U.S. trade deficit and service sector activity.
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