U.S. Treasuries were primarily higher in morning action, but the long bond continued to slide. Around 11 a.m. EDT, the two-year note was up 8/32 to 101 17/32, lowering the yield to 2.81%. Yields and prices move in opposite directions. The five-year note rose 11/32 to 103 13/32, yielding 3.81%. The 10-year Treasury climbed 3/32 to 102 13/32, dropping the yield to 4.69%. The 30-year bond shed 4/32 to 97 15/32, raising the yield to 5.55%.

Government bonds had been lower earlier in the session as investors worried that increased spending might force officials to call off plans to buy back debt. Instead of reducing debt, the government might have to sell more to finance additional spending, which increases supply and diminishes the value of the securities.