NEW YORK (CNN/Money) -
Bond prices rose in response to weak economic readings Tuesday but the advance was restrained by a strong auto sales report.
Investors refrained from making big commitments while awaiting employment figures due at the end of the week, which could shed more light on economic conditions. The Labor Department is scheduled Friday to issue July's unemployment report, which will contain details on payrolls.
The dollar slipped against both the euro and yen.
At about 3:45 p.m. ET, the benchmark 10-year Treasury was up 6/32 of a point to 102-16/32 to yield 4.43 percent, down from 4.46 late Monday, and the 30-year bond rose 11/32 of a point to 102-30/32 to yield 5.17 percent, down from 5.19 percent.
Prices and yields move in opposite directions.
The two-year Treasury note remained unchanged at 100-6/32 of a point, yielding 2.65 percent, while the five-year note nudged up 2/32 of a point to yield 3.65.
Treasury prices rose early in the session after the Commerce Department reported that consumer spending slumped in June amid meager income growth, with both readings below estimates.
The weak economic data suggested the economy isn't growing as fast as thought, easing fears of rapid inflation. Bond investors are wary of inflation because it erodes the value of the fixed-income investments.
But Treasurys failed to sustain the advance following news that July sales of vehicles made in North America were so far running near 14 million, well above expectations closer to 13 million.
"The very weak spending data didn't impact the market that much -- probably because the market's starting to look ahead to the third quarter," said Josh Stiles, senior bond strategist at IDEAglobal.
Also keeping bonds in check were reports that the latest terror alerts had been largely based on old information, which triggered an unwinding of Monday's modest safe-haven bid.
The euro bought $1.2050, up from the $1.2030 late Monday, and the dollar bought ¥110.57, down slightly from ¥110.69.
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