US bonds bounce back as attention shifts to Fed


U.S. sovereign bonds rallied on Monday, ahead of a U.S. Federal Reserve monetary policy decision on Wednesday.

Benchmark 10-year Treasury note prices rose, sending the yield lower to 1.966 percent, down from a finish of 1.977 percent on Friday. Yields on bonds move inversely to prices. (CNBC Explains.)

Thirty-year Treasury bonds yields also fell to 2.736 percent, after closing at 2.747 percent last week.


U.S. stocks finished mixed on Monday as oil prices fell.

The Fed is expected to hold interest rates on Wednesday and Fed Chair Janet Yellen will provide explanation at her post-meeting press conference.

No major economic data are due on Monday.

U.S. bond yields rose on Friday after European Central Bank President Mario Draghi suggested there would be no further cuts to negative euro zone interest rates.

German bunds and French OATs gained on Monday, as did other major European sovereign bond classes, including those of Portugal, Italy and Greece.