Treasuries were stronger in afternoon action, with the long bond leading the way higher. This morning, the
National Association of Purchasing Management's
nonmanufacturing survey revealed weakness in the service sector of the economy. Bonds tend to rally around signs of economic weakness.
Around 3 p.m. EDT, the two-year note was up 7/32, dropping the yield to 3.654%. Yields and prices move in opposite directions. The 10-year note was gaining 26/32 to 101 2/32, lowering the yield to 4.862%. The 30-year bond was climbing 29/32 to 99 13/32, yielding 5.415%.