U.S. government debt prices were higher and yields lower on Monday as investors monitor the latest development on U.S.-China trade and look ahead to the Federal Reserve meeting later this week.
The yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 1.8346%, while the yield on the 30-year Treasury bond was also lower at around 2.2695%.
Treasurys
Bond prices dropped Friday after a U.S. jobs report topped expectations. Nonfarm payrolls surged by 266,000 in November and the unemployment rate stood at 3.5%.
This week traders are waiting for a new Fed meeting, starting Tuesday. Market players are also closely following trade talks between the U.S. and China, looking for clarity as to whether both countries will be signing a trade deal soon. The U.S. is due to impose new tariffs on China by December 15.
China Assistant Commerce Minister Ren Hongbin said Monday the country hopes to make a deal with the U.S. "as soon as possible." Ren's comment came after data showed Chinese exports fell for a fourth straight month in November, potentially increasing pressure on China to make a deal.
Larry Kudlow, director of the White House National Economic Council, told CNBC on Friday that both sides were "close" to a deal, but suggested Trump was prepared to "walk away" if certain conditions were not met. Kudlow also confirmed that a Dec. 15 deadline remained in place to impose tariffs on another $156 billion on Chinese goods.
The U.S. Treasury is set to auction $84 billion in 13 and 26-week bills; and $38 billion in three-year notes.