U.S. Government Bond Prices Rise as Stocks Drift Lower -- Update
By Akane Otani
U.S. government bond prices inched higher Monday as stocks gave up some ground at the start of the week.
The yield on the benchmark 10-year Treasury note settled at 2.553%, compared with 2.560% Friday.
Yields, which rise as bond prices fall, initially ticked higher after the Federal Reserve Bank of New York's monthly survey of manufacturers showed a gauge of general business conditions picked up more than expected in April. That marked a rebound after the index fell to a nearly two-year low in March. Bond yields then fell, ending just a touch lower for the day, as the stock market showed signs of stalling.
Later this week, bond traders will get more insight on the economy with reports on industrial production, retail sales and housing starts. Corporate earnings season will also pick up, which some analysts believe could spur some volatility after a relatively quiet stretch for financial markets.
Gains across the stock market over the past few weeks have dampened demand for Treasurys, helping send the yield on the 10-year note above the 2.50% mark again after it tumbled in March.
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