Treasury prices fell Monday after an increase in consumer spending tamed fears that the U.S. economy is headed for another recession.
The government reported Monday that consumer spending rose 0.8 percent in July. A pullback of 0.1 percent in June had deepened worries that the U.S. economy was retracting.
Investors rushed into Treasurys for much of August, at one point sending the yield of the 10-year note below 2 percent, a record low.
The consumer spending report helped push the Standard and Poor's 500 index up 2.8 percent. The prices of government debt securities fell as traders moved money into riskier assets.
The 10-year note fell 62.5 cents per every $100 invested. Its yield rose to 2.27 percent from 2.19 percent late Friday.
The 30-year bond fell $1.17 per every $100 invested. Its yield rose to 3.61 percent from 3.54 percent. The yield on the 2-year edged higher to 0.21 percent. Bond yields rise when their prices fall.
The yield on the three-month T-bill was 0.01 percent. Its discount wasn't available.