US Treasuries prices rose on Monday as stock market losses and the difficulties some eurozone countries face selling debt in the capital markets spurred a flight to safe-haven assets like Treasuries. Major US stock indexes were over 1.5 percent lower, extending last week's losses on news that a special congressional committee would concede defeat in its efforts to cut the US deficit.
Meanwhile, the flight of investors from the debt of some European nations and banks, risking a credit squeeze, propelled investors toward safety. Members of a special US congressional panel were expected to issue a statement later in the day that aides said would announce its failure to get a landmark deal to reduce the US deficit by at least $1.2 trillion.
Still, Treasury debt yields remain contained in a range that has held since early November, with few expectations rates will break out that range any time soon. "It is the macro events on both sides of the pond that is driving price action today," said David Dietze, chief investment strategist at Point View Financial Services, Summit, New Jersey.
Prices of benchmark 10-year Treasury notes rose 11/32, with their yields easing to 1.97 percent from 2.01 percent on Friday, when the note price fell 13/32. The 30-year Treasury bond was up 21/32, its yield easing to 2.96 percent from 2.99 percent Friday.