NEW YORK (CNNMoney.com) -- Bond prices rose higher in afternoon trade as investors looked to a pair of reports indicating weakness in the housing market. The dollar declined in trade against the euro and yen.
The 10-year benchmark gained 12/32, or $3.75 on a $1,000 note, to yield 5.08 down from 5.15 percent Monday. The 30-year rose 24/32, or $7.50 on a $1,000 note, to yield 5.20 percent, down from 5.26 percent. Bond prices and yields move in opposite directions.
The 5-year gained 7/32 to yield 5.004 percent while the 2-year note gained 3 ticks to yield 4.94 percent.
Earlier news from the housing market failed to move the bond market.
"What is helping the Treasury market is this idea that housing is remaining a very big risk to the economy. The figures today in many eyes reinforce that," Tony Crescenzi, chief bond market strategist with Miller, Tabak & Co. in New York told Reuters.
"The housing figures support the idea of the Fed on hold [on interest rates], while the [bond market's] fear has been of moving toward a hike," Crescenzi added.
The Commerce Department said housing starts fell to an annual rate of 1.474 million in May, down from 1.53 million in April and roughly in-line with estimates from Briefing.com.
But permits, a key sign of builder confidence, came in at an annualized 1.5 million, up from 1.46 million last month and beating the projected rise of 1.47 million.
The euro bought $1.342, up from $1.341. The dollar bought ¥123.37 down from ¥123.62.
--from staff and wires reports 
