Treasurys down, but off lows
Investors begin to buy back government bonds after morning selloff as consumer borrowing report overshadows Microsoft, Yahoo, and Washington Mutual.
NEW YORK (CNNMoney.com) -- Bonds came off their lows Monday afternoon as investors bought back Treasurys on a weaker-than-expected consumer borrowing report.
According to the Federal Reserve, the total amount of consumer credit outstanding increased by $5.1 billion in February, less than the revised $10.3 billion growth in January. Analysts had predicted that consumer credit would increase by $6 billion.
Consumer credit increased by 2.4% in February, lower than the revised January growth rate of 4.9%, according to the report.
The Fed report released in the afternoon overshadowed positive news from corporations that came out earlier in the day.
Microsoft (MSFT, Fortune 500) said over the weekend that Yahoo (YHOO, Fortune 500) has three weeks to agree to a takeover or face a proxy fight for control of the company. On Monday, Yahoo said it isn't opposed to a deal, but wants a better offer than the current $41 billion.
Washington Mutual (WM, Fortune 500) also boosted the market, as the Wall Street Journal reported it is in talks to receive a $5 billion investment from private equity firm TPG and other investors.
The market initially took off after a down day on Friday, when a Labor Department report showed the United States had lost another 80,000 jobs in March. But stocks turned south the afternoon, lifting treasury prices off their intraday lows.
The benchmark 10-year Treasury note dipped 23/32 to 99 17/32 with a yield of 3.55%, down from 3.47% late Friday.
The 2-year note lost 6/32 at 99 21/32 with a yield of 1.92%, up from 1.81%.
The 30-year long bond fell 29/32 to 100 8/32 with a yield of 4.35%, down from 4.31% the session before.
Bond prices and yields move in opposite directions.
Investors also sold off bonds on a rising dollar, which posted gains against the 15-nation euro and Japanese yen Monday. 
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