MW: Treasury yields near highest in at least three weeks
NEW YORK (MarketWatch) -- Yields on 10-year Treasurys hovered near the highest levels in at least three weeks on Monday, as bond investors face a heavy slate of economic data ahead of the Federal Reserve's policy meeting on Tuesday.
Yields on 2-year notes, more sensitive to changes in interest-rate expectations, remain near the highest levels since mid-January, as reports show the U.S. economy is slowly but surely improving.
Yields on 10-year notes (UST10Y 3.70, -0.03, -0.67%) , which move inversely to prices, turned higher just after the data before receding moderately to 3.70%, down 1 basis point on the day. A basis point is 0.01%.
Yields on 2-year notes (UST2YR 0.95, +0.01, +1.38%) slid 1 basis point to 0.95%. Last week, they touched the highest in two months.
Treasury prices gave up a small advance after the New York Federal Reserve Bank's Empire State index on factory activity slipped to 22.9 in March from 24.9 in February.
"While this is only our first manufacturing data point in March, it does suggest continued gains in the manufacturing sector of the economy," said Dan Greenhaus, chief economic strategist at Miller Tabak.
Still to come on Monday are reports on industrial production, international-investment flows and an index on home builders' confidence.
"We do face a raft of data this week and most is expected to be a bit softer than prior, but nothing so egregious as to say the notion of some growth ahead is at risk," said strategists at CRT Capital Group.
