Bonds gain as stocks lose steam

NEW YORK (CNNMoney.com) -- Bond prices climbed Monday as U.S. stocks struggled to hold onto gains and investors turned towards the save-haven of treasurys amid recent credit market troubles.

The dollar rose against the euro and eased versus the yen.

The benchmark 10-year note rose 7/32, or $2.18 on a $1,000 note, to yield 4.77 percent, unchanged from the previous session. The 30-year climbed 12/32, or $3.75 on a $1,000 note, to yield 5.01 percent, down from 5.04 percent late Friday.

The five-year rose 4/32 to yield 4.56 percent, while the two-year yields gained one tick to yield 4.44 percent.

In an attempt to cool the markets, the Federal Reserve injected $2 billion into the banking system after adding $38 billion on Friday as investors became wary about a credit crunch.

Bonds fell earlier in the session after a better-than-expected July retail sales report. Last month, sales rose 0.3 percent, after easing in June, the Commerce Department reported, but stayed ahead of forecasts, helped by back-to-school discounts.

The reading helped soothe fears that housing and credit woes could throttle consumer spending.

Bonds moved sharply higher last week as investors sought shelter in the safe-haven investments from the troubled stock market.

In currency trading, the euro bought $1.3614, down from $1.3696. The dollar bought ¥118.27, down from ¥118.53 Friday.

--from staff and wire reports