U.S. Treasuries drifted down for the sixth time in the last seven sessions. Volume was light as the market prepared to close early for the Independence Day holiday.

The two-year note was recently down 4/32 to 99 9/32, raising the yield to 4.247%. Yields move inversely to prices. The 10-year benchmark note lost 14/32 to 97 4/32, yielding 5.386%, while the 30-year Treasury bond fell 17/32 to 95 1/32, moving the yield up to 5.725%.

Traders suggested investors were doing some profit taking in the wake of yesterday's gains, but they said flows were light ahead of the shortened trading session that ends at 2 p.m. EDT. "The market's trading down, but we don't have a substantial reason why it's lower," said Mike McGlone, vice president of options trading at

Aubrey G. Lanston

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, who said he expected to see more of yesterday's rally.

After the holiday, the market will continue to digest economic data for clues about the health of the economy. McGlone, who said he thinks the economy remains in a "post-bubble" state of contraction, believes the Treasury market will see some gains later this week, in response to Friday's coming

employment report.

This morning, data showed that

factory orders for May rose 2.5% following a revised 3.4% drop in April, well ahead of market expectations calling for a 1.5% rise. Both durable goods and nondurable orders rose, while inventories fell 0.3% in May following April's 0.2% drop.