Bonds

Treasury yields rise slightly to start the week

Treasury yields climbed slightly on Monday as investors await the planned signing of a so-called "phase one" trade deal between the U.S. and China later this week.

The yield on the benchmark 10-year Treasury note, which moves inversely to prices, rose two basis points to around 1.84%, while the yield on the 30-year Treasury bond was also higher at around 2.31%.

U.S. Treasury Secretary Steven Mnuchin said Sunday that he expects an interim trade deal between Washington and Beijing will add significantly to economic growth in 2020.

The world's two largest economies plan to sign a phase-one trade deal on Wednesday, which includes China purchasing $200 billion worth of U.S. goods over the next two years and the U.S. reducing tariffs on about $120 billion worth of Chinese products.

The U.S. has decided to remove China from a list of countries considered currency manipulators, a person familiar with the matter told CNBC.

Treasury data Monday showed the federal deficit totaled $1.02 trillion over the 12 months that ended in December, the first year the deficit has topped the $1 trillion market. The budget gap grew 17% in 2019, compared to a 28% increase in 2018.

The U.S. Treasury is set to auction $42 billion in 13-week bills and $36 billion in 26-week bills on Monday.