Treasurys Gain on Soft Economic Data
Treasurys posted modest gains after two indicators pointed to a sputtering economy, easing some investors' fears that the Federal Reserve will begin to cut back on its stimulus efforts as soon as next month.</br></br>At 3 p.m. EST, the benchmark 10-year note added 4/32 in price, yielding 2.741% in a muted, preholiday trading. The 30-year bond climbed 4/32 in price to yield 3.833%. Bond prices rise when yields fall.</br></br>The Fed has said it will maintain its $85 billion-a-month bond-buying program until the economy has returned to sustainable growth and job creation. Monday's data suggested sagging growth relieved worries that the Fed would soon begin to taper such purchases, which have helped keep yields low.</br></br>U.S. pending home sales fell 0.6% in October to 102.1, the lowest level in nearly a year, according to the National Association of Realtors. Economists had expected a 1.1% increase. The index has fallen for five months in a row due to higher housing prices and mortgage rates.</br></br>Separately, the Federal Reserve Bank of Dallas reported its headline manufacturing index fell to 1.9 in November from October's 3.6. It was the lowest reading since March, suggesting a continued slowdown in the region's manufacturing activity. Economists had anticipated an improvement to 5.