By Deborah Levine
NEW YORK (MarketWatch) -- Treasury prices fell on Monday, pushing yields up, after China's signal it will allow its currency to be more flexible boosted hopes for more growth in China. A stronger yuan could also mean fewer excess reserves to invest in U.S. bonds. Yields on 10-year notes (UST10Y 3.29, +0.06, +1.98%) , which move inversely to prices, rose 8 basis points to 3.30%. In the next few days and weeks, "the China currency regime shift could be slightly bearish for the U.S. Treasury market, all else equal," said George Goncalves, a bond strategist at Nomura Securities. Traders are also gearing up for three big note auctions starting on Tuesday, which tends to pressure prices down.
