NEW YORK (MarketWatch) -- Long-term Treasury prices rose and the dollar remained higher on Tuesday after a report showed U.S. productivity fell 0.9% and unit labor costs rose 0.2% in the second quarter. Yields on 10-year notes (UST10Y 2.81, -0.02, -0.64%) , which move inversely to prices, fell 2 basis points to 2.81%. The dollar index (DXY 81.32, +0.61, +0.75%) , a measure of the U.S. unit against a basket of major currencies, rose to 81.338, compared to 81.325 before the data and up from 80.711 in North American trade late Monday. The euro (EURUSD 1.3120, -0.0103, -0.7790%) traded at $1.3123, down from $1.3226 Monday. Still to come is the Treasury's auction of 3-year notes (UST3YR 0.81, +0.01, +1.64%) and the Federal Reserve's monetary policy decision, when many are expecting officials to take some steps to reinvest proceeds from maturing debt back into the bond market.
