2023.06.0519:13:00UTC+00Treasuries Close Roughly Flat Following Choppy Trading Day

Following the notable pullback seen in the previous session, treasuries showed a lack of direction over the course of the trading day on Monday.

Bond prices bounced back and forth across the unchanged line before closing roughly flat. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, crept up by less than a basis point to 3.693 percent.

The choppy trading on the day came following the release of a report from the Institute for Supply Management showing service sector activity in the U.S. saw only modest growth in the month of May, with the index of activity in the sector falling by more than expected.

The ISM said its services PMI fell to 50.3 in May from 51.9 in April, although a reading above 50 still indicates growth in the sector. Economists had expected the index to edge down to 51.5.

A separate report released by the Commerce Department showed new orders for U.S. manufactured goods increased by slightly less than expected in the month of April.

The report said factory orders rose by 0.4 percent in April after climbing by a downwardly revised 0.6 percent in March.

Economists had expected factory orders to climb by 0.5 percent compared to the 0.9 percent advance originally reported for the previous month.

Traders may also have been reluctant to make significant moves as they look ahead to next week's Federal Reserve meeting.

The Fed is due to announce its latest monetary policy decision next Wednesday, with the central bank widely expected to pause its recent series of interest rate hikes.

Key inflation reports are also likely to be in the spotlight next week, as the data could impact whether the Fed resumes its rate hikes next month.

Looking ahead, trading activity on Tuesday is likely to remain subdued amid a lack of major U.S. economic data.