MW: Treasurys fall, dollar better after ISM, Bernanke
By Deborah Levine
NEW YORK (MarketWatch) -- Treasury prices extended a decline and the dollar erased losses on Tuesday after the ISM's index on manufacturing rose to 61.4 in February, a little better than some analysts expected. At the same time, Federal Reserve Chairman Ben Bernanke began testimony to a Congressional committee, saying there are grounds for optimism on the jobs front and that inflation due to commodity price increases will be modest and temporary. The dollar index (DXY 76.94, +0.05, +0.06%) , which measures the U.S. unit against a basket of six currencies, traded at 76.978, from 76.800 earlier and turning up from 76.909 late Monday. The euro [c: cur_eurusd] rose to $1.3810, from $1.3839 earlier and versus $1.3804 in late North American trading Monday. Yields on 10-year notes, (UST10Y 3.46, +0.04, +1.08%) , which move inversely to prices, rose 6 basis points to 3.49%, aafter trading at 3.47% before Bernanke began and the ISM data came out.
