U.S. Government Bonds Strengthen; Treasurys on Pace for Biggest Annual Rally Since 2011
Benchmark Treasury bonds strengthened on Monday, underscoring the appeal of highly-liquid assets as the end of the year approaches.</br></br>In late-afternoon trading, the yield on the benchmark 10-year note fell to 2.157% from 2.178% Friday.</br></br>When bond yields fall, their yields rise.</br></br>Traders said the buying reflected some tweaking of bond portfolios and that the price moves might have been exaggerated by thinner trading before Thursday's Christmas holiday.</br></br>"It just shows a continuation of demand for longer-dated Treasury bonds'' which have rallied during the course of 2014, said Scott Buchta, head of fixed-income strategy at Brean Capital LLC. "Trading volumes have begun to settle down as many accounts begin to close out their books for 2014."