India, May 19 -- After moving sharply lower early in the session, treasuries regained ground over the course of the trading day on Monday.
Bond prices climbed well off their early lows but remained in negative territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose 3.4 basis points to 4.475 percent after reaching a high of 4.562 percent.
The initial weakness among treasuries came in reaction to news that Moody's has downgraded the U.S. debt rating by a notch to Aa1 from Aaa.
Moody's said the downgrade reflects the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns.
Selling pressure waned ...