NEW YORK (CNN/Money) -
Treasury prices rose Monday as investors looked to fixed-income securities amid concerns of further violence in the Middle East and political turmoil in Asia.
At about 4 p.m. ET, the benchmark 10-year note gained 15/32 of a point to 102-11/32 to yield 3.72 percent, down from 3.77 percent Friday, and the 30-year bond rose 21/32 of a point to 110-25/32, with a yield of 4.67 percent, down from 4.70 percent late last week.
The two-year note added 2/32 of a point to 100-8/32 to yield 1.01 percent and the five-year note rose 9/32 to 99-25/32 to yield 2.67 percent. Bond prices and yields move in opposite directions.
"A safety premium developed over the weekend with what we saw out of Israel and (Gaza) and what we didn't see coming out of Afghanistan and Pakistan," John Spinello, a fixed-income strategist at Merrill Lynch Government Securities, told Reuters in reference to Israel's killing of Hamas founder Sheikh Ahmed Yassin and an apparently inconclusive battle between the Pakistani army and suspected al Qaeda militants.
U.S. equities markets and stocks around the world slid lower on news of Yassin's death for fear that the Palestine-based militant group would retaliate.
In addition, thousands of opposition supporters have refused to disband protests in Taiwan until votes are recounted as conspiracy theories and allegations of fraud swirl around the latest political vote.
Treasury yields have tumbled in recent weeks amid weak U.S. employment figures, the terrorist attack in Spain and a falling stock market.
"With the market having failed to penetrate 3.65 percent, there is room for a backup into the 3.80's, perhaps as far as 3.90," Richard Gilhooly, fixed-income strategist at BNP Paribas, told Reuters, referring to the 10-year note yield. Gilhooly added there had been plenty of buying on dips so far.
Analysts said events in the Middle East had little direct impact on dollar sentiment. But the developments drew investor attention to security concerns, which have weighed on the dollar since the deadly Madrid bombs less than two weeks ago.
The euro bought $1.2330, up from $1.2276 late Friday. The dollar held steady at ¥106.78, leaving it unchanged from late Friday.
--from staff and wire reports
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