2019.01.1415:20:00UTC+00Treasuries Close Slightly Lower After Seeing Initial Strength

After initially moving to the upside, treasuries showed a notable pullback over the course of the trading session on Monday.

Bond prices pulled back well off their highs of the session and into negative territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by nearly a basis point to 2.710 percent after hitting a low of 2.672 percent.

The early strength among treasuries came amid concerns about the global economic outlook following the release of disappointing Chinese trade data.

Data from China's General Administration of Customs showed exports tumbled by 4.4 percent year-over-year in December, reflecting the biggest drop in two years. Economists had expected exports to increase by 3 percent.

The report also said Chinese imports plunged by 7.6 percent in December compared to the same month a year ago, defying expectations for a 5 percent jump.

ING Greater China Economist Iris Pang said the contraction in Chinese imports and exports "is likely to continue into 2019 due to falling foreign demand, including demand for Chinese-made electronic products."

Buying interest waned shortly after the start of trading, however, as traders seemed reluctant to make significant moves amid a lack of major U.S. economic data.

Trading on Tuesday may be impacted by reaction to a report on producer price inflation as well as data on New York manufacturing activity.