Bonds fall on economic reports
Treasury prices decline following stronger-than-expected readings on the manufacturing and housing sectors.
NEW YORK (CNNMoney.com) -- Treasury prices fell Friday as upbeat readings on the manufacturing sector and the housing market encouraged investors to venture back into riskier, but more profitable, stocks.
The benchmark 10-year note fell to 98 6/32, and its yield rose to 4.09% from 4% late Thursday. Bond prices and yields move in opposite directions.
The 30-year long bond sank 95 2/32, with the yield climbing to 4.68% from 4.60% late Thursday.
The newly auctioned 2-year note fell to 100 2/32, lifting its yield to 2.71% from 2.61%.
Stocks, meanwhile, rose in early trade, thanks to two reports suggesting the economy is more resilient than previously thought.
"We're seeing stability in the stock market, after a big selloff in the previous session, and people are taking a few chips off the table before the weekend," said Steve Van Order, chief fixed-income strategist at Calvert Funds.
Fixed-income instruments like government-backed bonds are viewed by many investors as a safe haven during times of economic duress.
When the economy begins to show signs of strength, many investors sell bonds and seek out higher returns in riskier equity-based investments.
Eyes on the economy: The Commerce Department reported that orders for durable goods increased 0.8% last month, far better than the 0.4% decline that economists had been expecting.
Separately, the Census Bureau reported that June sales of new single-family homes came in at a seasonally adjusted annual rate of 530,000, down 0.6% from May's revised reading of 533,000.
The June figure was much higher than the economists' consensus forecast of 505,000, as compiled by Briefing.com. Sales have declined 33.2% from the year-earlier rate of 793,000, the government said. 
