Treasuries fall on strength of U.S. consumers

Click the chart for current bond yields.

NEW YORK (CNNMoney) -- Treasury prices fell Monday, as investors shrugged off Hurricane Irene and welcomed a better-than-expected showing for consumer spending.

Early Monday, the government reported Americans spent more in July than economists were forecasting. While consumer finances are still far from robust, the rise in spending was seen as a welcome sign, given that consumer spending accounts for 70% of U.S. economic activity.

Also, damage from Hurricane Irene seemed less severe than expected. Financial markets in New York opened on time and trading continued, albeit at slightly lower volumes.

The news about consumer spending and hurricane costs pushed investors into stocks and away from safe havens like U.S. Treasuries. As a result, bond prices fell, and yields -- which move in the opposite direction -- rose. The 10-year yield ended the trading session at 2.27%, up from 2.19% late Friday.

Less than two weeks ago, the 10-year Treasury yield had touched a record low below 2%, amid weak economic data that seemed to increase the odds of the U.S. slipping into a second recession.

Now this week, both economists and traders will mull over an onslaught of new data, including the closely watched monthly jobs report on Friday. More weak results could increase demand for bonds, which are considered a safe bet in times of uncertainty.

"People are going to take all the information they get this week and start to come up with a more coherent picture for where the economy will stand in September," said Jim Vogel, executive vice president of FTN Financial Capital Markets.

Traders will also be using the data to fathom whether the Federal Reserve will step in with further measures to stimulate the U.S. economy.

In a much-anticipated speech on Friday, Fed Chairman Ben Bernanke said he will take a closer look next month on what steps the Fed can take to jumpstart stalled growth, but he stopped short of committing to any specific measures.