Updated from 11:33 a.m. ESTBonds snapped a four-session losing streak Tuesday, after the 10-year yield hit a 21-month high at 4.80% and traders warily made their way back to a battered market. "Yields have now backed up into our buy zone," says David Ader, RBS Greenwich Capital's U.S. government bond strategist, referring to 10-year yields near 4.75% and two-year yields heading for 4.80%. "We do remain bullish on the year but are cautious to dive back in just yet," says Ader. Ader believes that a variety of buyers, including foreign investors and participants looking to cover short positions, will find these levels attractive. But not much of a bid has fully developed, he says, because it is difficult to judge where the floor is ahead of the market-moving payrolls report. The 10-year yield ended the day up 4/32 of a point to yield 4.73%, while the 30-year bond gained 12/32 to yield 4.71%, recovering from a nearly half-point slide in the morning. The two-year edged higher 1/32 to yield 4.75%, while the five-year gained 2/32 to yield 4.76% and 4.75%. Longer-dated maturities, such as the 10-year note and the 30-year bond, typically yield more than shorter-dated notes, because it's riskier to loan money for longer periods of time. But falling prices on the short end of the curve have lately pushed rates above those on the long end, causing an "inverted" yield curve, something that has been a reasonably reliable leading indicator of economic slowdowns in the past. Bond prices and yields move in opposite directions. But the inversion between yields on 10- and two-year notes narrowed to just 2 basis points, after the curve went to a positive slope (i.e., "uninverting") by three basis points in intraday action. This is the flattest the curve has been in weeks, as the market waits evidence that the economy is strong enough to justify yields at their highest levels since June 2004. Michael Cheah, a portfolio manager with AIG Sun America Asset Management, points out that the Fed has said its future moves are all data-dependent, but that economic indicators are not sending clear messages.