Treasuries drifted down after investors brushed off the latest earnings concerns and pushed the stock market higher.

Volume was light. The two-year Treasury note recently dipped 1/32 to 99 21/32, raising the yield to 4.054%. Yields and prices move in opposite directions. The 10-year benchmark note slipped 6/32 to 97 24/32, raising the yield to 5.300%, while the 30-year Treasury bond lost 10/32 to 95 17/32, yielding 5.687%.

John Canavan, a Treasury market analyst at

Stone & McCarthy Research Associates

, said government securities came under a little pressure after stocks started to move higher. As less volatile instruments, fixed-income securities tend to be considered safe havens when stocks are under siege. But money usually gets rotated back out as equities return to favor.

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The fixed-income market has also been biding its time as it awaits the latest data on the economy's health. Dealers expect activity to pick up on Friday, when the

producer price index, June's

retail sales and the latest

consumer sentiment index will be released.

"It's going to depend on retail sales, which don't look to be especially strong," said Canavan. "We may see a little downside reaction on stronger numbers. At this point, the big question on traders' minds is how much easing room the

Federal Reserve has left. Strong data will make the market nervous."