Treasurys extended steep declines on Monday, sending Bond yields sharply higher, as better-than-expected housing data and the confirmation of bond insurers' credit ratings saw investors leave safe-haven positions in government bonds.
The benchmark 10-year Treasury bond was down 1% at 96.21, yielding 3.904%. The 2-year note fell 0.06% to 100, yielding 2.120%, while the 30-year bond fell 1.2% to 95.1, yielding 4.663%. Bond yields move inversely to price. Interest rates are up almost a half a point in the last 2 weeks.
A blow to bonds came from better-than-expected existing-home sales data. Bonds benefit from slowing economic conditions, which tend to ease inflationary pressures. Inflation erodes the value of fixed-income assets such as bonds.
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