Developments in Europe's debt crisis sent the U.S. government bond market swinging on Monday.
Treasury prices fell and yields rose in morning trading after Italy's new government proposed sweeping deficit cuts over the weekend. Treasury yields then dropped in the afternoon following reports that all countries that use the euro, even Germany, may be at risk of getting their credit ratings cut.
After jumping as high as 2.11 percent Monday morning, the 10-year yield ended the trading day at 2.04 percent, the same as it was late Friday. The price of the 10-year Treasury's price was unchanged.
The market for U.S. Treasurys has closely tracked news out of Europe for months. Worries that the region's debt crisis could deepen have sent traders into the perceived safety of Treasurys, securities backed by the world's largest economy. Rising demand pushes prices higher and yields down. Signs that European leaders are tackling their debt troubles tend to drive traders out of Treasurys and push yields higher.
In other trading, the 30-year Treasury bond rose 12.5 cents. Its yield dipped to 3.02 percent from 3.03 percent. The yield on the two-year note rose to 0.25 percent from 0.24 percent.
In the market for T-bills, the three-month bill paid a 0.01 percent yield. Its discount was unavailable.