NEW YORK (CNNMoney.com) -- Treasurys fell Monday after strong European bank earnings and upbeat economic reports boosted investors' appetite for risk.
What prices are doing: The benchmark 10-year note fell 16/32 to 104-17/32, and its yield rose to 2.97%. Bond prices and yields move in opposite directions.
 |
| Click the chart for current prices and yields. |
The 30-year bond slipped 1-12/32 to 105-10/32 and its yield rose to 4.07%. The 2-year note was flat at 100-4/32 and a 0.57% yield, while the 5-year note slid 6/32 to 100-17/32 and a 1.64% yield.
What's moving the market: Two of Europe's largest banks, HSBC and BNP Paribas, outperformed analyst expectations when they reported strong earnings Monday morning, and world stock markets rallied on the news.
The U.S. stock market followed in line, boosted further by upbeat reports on manufacturing and construction spending.
An Institute for Supply Management report showed manufacturing activity grew for the 12th consecutive month in July, although at a slower rate than the month before. Still, the number beat analysts expectations.
Separately, the Commerce Department said construction spending rose 1% in June, when economists had expected construction spending to fall 0.8%.
Treasurys fell as investors flocked to riskier trades like equities on the upbeat economic news. U.S. debt is widely considered a "safe-haven" buy in times of economic uncertainty, so demand for Treasurys often falls when the economy looks to be improving.
Investors are looking ahead to the government's unemployment report due on Friday, said Kenneth Naehu, head of fixed income at Bel Air Investment Advisors. Traders will be gearing up all week for its headline jobs number, which is considered one of the most important gauges of the economic recovery, he said. 
| Overnight Avg Rate | Latest | Change | Last Week |
|---|---|---|---|
| 30 yr fixed | 3.80% | 3.80% | |
| 15 yr fixed | 3.09% | 3.11% | |
| 5/1 ARM | 2.65% | 2.69% | |
| 30 yr refi | 3.77% | 3.86% | |
| 15 yr refi | 3.09% | 3.21% |
Today's featured rates:
| Index | Last | Change | % Change |
|---|---|---|---|
| Dow | 12,454.83 | -74.92 | -0.60% |
| Nasdaq | 2,837.53 | -1.85 | -0.07% |
| S&P 500 | 1,317.82 | -2.86 | -0.22% |
| Treasuries | 1.74 | -0.01 | -0.80% |
| Company | Price | Change | % Change |
|---|---|---|---|
| Bank of America Corp... | 7.15 | 0.01 | 0.14% |
| Sprint Nextel Corp | 2.62 | 0.09 | 3.56% |
| Cisco Systems Inc | 16.33 | -0.06 | -0.37% |
| Chesapeake Energy Co... | 15.81 | 0.23 | 1.48% |
| Ford Motor Co | 10.60 | 0.01 | 0.09% |
|
The Senate hearing will focus JPMorgan's recent $2 billion trading loss, which Dimon announced earlier this month. More |
The offer for mail handlers is part of the Postal Service's plan to cut 150,000 jobs by 2015. More |
In the whirlwind of its IPO fallout, there has been a sort of glee in watching the company stumble. What's driving the Facebook-schadenfreude and what can the social network do about it? More |
One in six children in the United States is obese. These small businesses have found creative -- and lucrative -- ways to fight the childhood obesity epidemic. More |
In Harper County, Kansas, oil companies are offering farmers up to $1,250 an acre for the mineral rights that allow them to drill for oil on their property. More |
.
