An unexpected shrinkage in the U.S. trade deficit for December put the brakes on strength in Treasury bonds. The biggest decline in the U.S. trade deficit in nearly four years raised hopes that the gross domestic product for the fourth quarter of 2012 may be revised higher from a shocking 0.1% contraction initially reported last week, dimming the allure of Treasury bonds as a haven. The benchmark 10-year note was 1/32 lower in price in recent trade, yielding 1.957%, according to data provider Tradeweb. Bond prices move inversely to their yields. Even as Friday's earlier price gain was eliminated, the ...

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