NEW YORK (CNNMoney.com) -- Treasurys fell Monday after the Obama administration unveiled a $3.8 trillion budget and a report showed personal income rose in December.
What prices are doing: The benchmark 10-year note was down 18/32 to 97-23/32, pushing the yield up to 3.66% from 3.62% late Friday. Prices and yields move in opposite directions.
 |
| Click on chart to view bond prices. |
The 30-year bond fell 1-7/32 to 96-30/32 and its yield was 4.57%. The 2-year note edged down 3/32 to 100-1/32 and yielded 0.86%.The 5-year note fell 8/32 to 99-13/32, and yielded 2.39%.
What's driving prices: President Obama revealed a $3.8 trillion budget for 2011 on Monday, aiming to promote continuing government spending and while controlling the nation's deficit. The budget would reduce debt by $1.2 trillion over the next 10 years.
The Commerce Department said personal income was up 0.4% in December, beating the 0.3% increase expected by economists surveyed by Briefing.com. Personal spending edged up 0.2%, below the 0.3% rise predicted by analysts.
What analysts are saying: "The real story of today is the unveiling of Mr. Obama's budget -- that's what it's all about," said Peter Cardillo, a chief market strategist at Avalon Partners.
"We have a lot of things coming out this week, including the granddaddy report which is employment data." Positive jobs data and a lower level of unemployment will pressure bond prices, he said.
And as the economy continues to show signs of recovery in 2010, yields will rise, pushing bond prices lower, said Cardillo. 
| Overnight Avg Rate | Latest | Change | Last Week |
|---|---|---|---|
| 30 yr fixed | 3.89% | 3.88% | |
| 15 yr fixed | 3.21% | 3.21% | |
| 5/1 ARM | 2.87% | 2.88% | |
| 30 yr refi | 3.96% | 3.96% | |
| 15 yr refi | 3.30% | 3.29% |
Today's featured rates:
| Index | Last | Change | % Change |
|---|---|---|---|
| Dow | 12,801.23 | -89.23 | -0.69% |
| Nasdaq | 2,903.88 | -23.35 | -0.80% |
| S&P 500 | 1,342.64 | -9.31 | -0.69% |
| Treasuries | 1.97 | -0.08 | -3.81% |
| Company | Price | Change | % Change |
|---|---|---|---|
| Bank of America Corp... | 8.07 | -0.11 | -1.34% |
| General Electric Co | 18.88 | -0.26 | -1.33% |
| Cisco Systems Inc | 19.90 | -0.10 | -0.52% |
| Ford Motor Co | 12.44 | -0.25 | -1.97% |
| Frontier Communicati... | 4.04 | -0.10 | -2.42% |
|
Now that the complex deal negotiations are over, many foreclosures that had been stuck in limbo will proceed. More |
Obama's 2013 budget will include many tax proposals he has offered before. One new addition is the Buffett Rule, but don't expect much more detail. More |
Buzzy social network Pinterest got caught in a disclosure controversy after users found affiliate links slipped into their pins. More |
One family-owned Chicago pizzeria is helping to make love connections nationwide with heart-shaped pizzas on Valentine's Day. More |
Hoping to cut their losses, banks are paying delinquent homeowners up to $35,000 in incentives to sell their homes in short sales and avoid foreclosure. More |
.
