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US Treasurys yields rise after China stimulus

U.S. government debt yields rose on Monday after China's central bank cut the amount of money that banks must hold as reserves.

China's central bank on Sunday lowered the reserve requirement ratio (RRR) for all banks by 100 basis points. The deeper-than-expected cut was the second reduction in two months and marks a continuing effort by the world's second-largest economy to combat slowing growth.

Read More If nobody likes bonds, who's buying?

On Monday, benchmark 10-year Treasury notes (U.S.: US10Y) yielded 1.88 percent, after closing at 1.85 percent on Friday. The yield on the 30-year Treasury note traded around 2.540 percent, after closing at 2.505 percent on Friday.

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On the data front, the coming week will bring mainly housing market indicators. In addition, the Chicago Federal Reserve National Activity Index will be released at 8:30 a.m. ET on Monday.

Greece also remains in focus for European markets. European Central Bank President Mario Draghi said this weekend that the country, which is running out of money and could default on its debts, must try to save itself.

Meanwhile, Greek Finance Minister Yanis Varoufakis said in broadcast interview on Sunday that if Greece were to leave the euro zone, there would be a contagion effect in the euro zone.

Greek 10-year bond yields traded higher at over 13 percent on Monday.



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