Treasury prices rose Monday as the two houses of Congress voted on a deal reached between President Barack Obama and Congressional leaders to raise the nation's borrowing limit ahead of Tuesday's deadline.
A report released Monday also showed a slowdown in U.S. manufacturing, which led to a pullback from riskier assets like stocks. That sent Treasury prices higher.
The Institute of Supply Management said U.S. manufacturing barely grew last month, raising fears that the economy will slow down further in the second half of the year.
The yield on the benchmark 10-year Treasury note fell to 2.75 percent Monday, an eight-month low. That's down from 2.80 percent late Friday. Its price rose 31.2 cents for every $100 invested.
The manufacturing slowdown followed other weak economic reports. Last week, the government reported the U.S. economic growth in the first half of 2011 was the weakest since the recession ended two years ago.
Bonds rise when investors expect the economy to be soft.
The yield on the 30-year bond fell to 4.08 percent from 4.12 percent late Friday. Its price jumped 65.6 cents per $100 invested.
In the market for Treasury bills, the yield on the 3-month bill fell to .07 percent from .09 percent. Its discount was 0.08 percent.