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Treasury Yields Rise Amid Strong China Data, Progress In Trade Talks.

U.S. government debt prices were lower Monday, as investors monitored strong manufacturing numbers out of China.

The yield on the benchmark 10-year Treasury note rose to 2.444 percent, while the yield on the 30-year Treasury bond climbed to 2.844 percent. The yield on the 3-month bill was marginally higher, at 2.401 percent. Bond yields move inversely to prices.

Fixed income traders turned their attention to the latest economic data from China. The country’s manufacturing activity expanded unexpectedly in March, a private survey showed, at its fastest pace in eight months.

The news gave some much-needed relief to investors unnerved of late by fears of an economic slowdown. Early last week, bond yields fell and equities slumped with investors worried a U.S. recession could be coming.

Elsewhere, sentiment got a boost from news of progress in U.S.-China trade talks. The countries concluded their latest round of trade talks last week, and are due to meet for further discussions in Washington this week.

U.S. officials last week said that China had made proposals on various issues, including forced technology transfers, that go further than previous commitments.

On the data front, U.S. retail sales, manufacturing numbers, construction spending and business inventories are due to be released Monday morning.

Meanwhile, the Treasury is set to auction $45 billion in 13-week bills and $39 billion in 26-week bills.

Story cited here.

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