U.S. government debt yields rose Monday amid growing optimism in U.S.-China trade talks.
Market participants continue to closely monitor global trade developments. The U.S. and China both said on Friday that they had made progress in talks, stirring hopes of a trade agreement later this month. The language used to describe the progress, however, was less clear.
China said that it had reached a consensus with the U.S. in principle after a phone call among high-level trade negotiators this week.
The Chinese Ministry of Commerce said Vice Premier Liu He had a phone call with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin on Friday. It said the two sides conducted "serious and constructive" discussions on "core" trade points and talked about arrangements for the next round of talks.
The White House struck a somewhat cooler tone and said in a statement Friday that the trade representatives "made progress in a variety of areas and are in the process of resolving outstanding issues. Discussions will continue at the deputy level."
The world's two largest economies secured a limited trade deal last month, in an attempt to end a protracted dispute that has battered financial markets and hammered global growth.
Adding to upbeat market sentiment, the U.S. Labor Department said Friday that American employers added 128,000 jobs in October — comfortably beating an estimate of 75,000 from economists surveyed by Dow Jones.
The jobs number appeared to reassure investors after a monthly index of manufacturing by the Institute for Supply Management fell for the third consecutive month.