By Deborah Levine and Greg Morcroft, MarketWatch
NEW YORK (MarketWatch) — Treasury prices increased on Monday, pushing yields down from their highest since late May, as U.S. and European equities slipped, modestly boosting demand for U.S. government debt.
Yields on 10-year notes 10_YEAR -1.32% fell for a second day, by 2 basis point to 1.64%. Bond prices move inversely to their yields.
Yields on 30-year bonds 30_YEAR -1.09% declined 3 basis points to 2.72%.
Five-year note yields 5_YEAR -1.96% slipped 1 basis point to 0.70%.
Last week, yields rose through the government’s trio of quarterly auctions. Read about Treasury market last week.
Supporting interest in riskier assets, many investor still expect the Federal Reserve and European Central Bank to ease monetary conditions further, including potentially by buying bonds, if economic conditions deteriorate.
“Let’s not lose sight of the grand issues of Europe,” said bond strategists at CRT Capital Group.
U.S. stocks opened lower, with the S&P 500 Index SPX -0.42% losing 0.3%. See story on U.S. stocks.
Major European benchmark indexes also lost ground. Read about Europe stocks.
Keycomingg events include the Fed’s annual retreat in Jackson Hole, Wyo., later this month, and U.S. andEuropean Central Bankk meetings in September.
There was U.S. economic data on Monday’s calendar, but Tuesday brings reports on retail sales and producer prices. The Consumer Price Index, housing starts and industrial production are all also due this week.
Expectations for the data are “skewed to at least modest improvement,” CRT analysts said. “That tempers our otherwise bullish reversal view, but does not eliminate it. We like the levels outright” on yields and the lack of debt sales should support the market.
Deborah Levine is a MarketWatch reporter, based in New York.
Greg Morcroft is MarketWatch's financial editor in New York.
