Treasurys gained Monday, pushing yields lower, after a report showed consumer spending fell in December for the sixth time in seven months
Two-year note yields fell 6 basis points, or 0.06%, to 0.90%.
Ten-year note yields ) declined 4 basis points to 2.81%.
Consumer spending slipped 1% in December, slightly more than the 0.9% decline anticipated by economists surveyed by MarketWatch. The report also showed personal income fell 0.2%, compared to a forecast for a 0.4% decline, and inflation was flat.
Bonds were higher before the report as U.S. equity futures pointed lower, following overseas markets. That may stem from disappointment in the lack of progress from Congress and the White House on passing a stimulus package or establishing a good bank/bad bank institution that would buy up the delinquent loans and illiquid securities corroding banks' books.
"Equities are getting hit as both the bad bank and stimulus packages do not seem to be done," said Andrew Brenner, co-head of structured products and emerging markets at MF Global.
Still to come at 10 a.m. Eastern time, a manufacturing survey from the Institute for Supply Management is expected to edge lower in January from 32. 9.
