By Deborah Levine
NEW YORK (MarketWatch) -- Treasury prices rose on Tuesday, pushing yields down after the three-day weekend, before a report expected to show the non-manufacturing sector of the U.S. economy softened in June. Yields on 10-year note (UST10Y 2.97, -0.01, -0.24%) , which move inversely to prices, fell 1 basis point to 2.97%. Still, analysts note that after a strong rally in recent weeks that took 2-year yields (UST2YR 0.63, -.00, -0.64%) to new record lows and 10-year yields below 3%, extending gains may require more solid evidence than just fear about a slowdown in economic growth. "With little data and no Congress, the currency and equity dance along with deal flow will drive price action and we see a defensive posture toward Treasurys as prudent," said John Spinello, a strategist at Jefferies & Co.
