Treasury prices fell Monday as traders continued to react to data last week suggesting a U.S. economic recovery is at hand and concerns that the
might soon reverse its interest rate course.
At about 11:30 a.m. EST, the 10-year note was losing 25/32 to 97 26/32, yielding 5.29%, its highest level since July. The 30-year bond was down 25/32 to 97 26/32, yielding 5.29%, while the 2-year note was off 5/32 to 99 18/32, yielding 3.32%.
fed funds rate was last week cut for the 11th time this year, to 1.75%. Data showing a decline in business inventories and a smaller-than-expected fall in industrial production suggested to some that the economy had bottomed and more cuts might not be in the offing.