By Deborah Levine
SAN FRANCISCO (MarketWatch) -- Treasury prices gave up gains notched in Asia Monday as traders wavered between the short-term positioning ahead of the week's government debt auctions, technical levels and the longer term political and Federal Reserve outlook. Yields on 10-year notes 10_YEAR +0.05% rose 1 basis point to 1.91%, up from 1.88% overnight and near their highest levels in months. "We have few doubts that rates will be higher later this year and next as we do approach the end of this current Fed stance. The issue for us remains a more tactical play in the first quarter and the very real risks we associate with the debt ceiling and, still, moderate growth trajectory in the economy," said bond strategists at CRT Capital Group. For the upcoming week, it's possible that the run-up in yields last week was "overdone or at least we've hit an area for support. These levels may prove an attractive buying opportunity."
