By Akane Otani
U.S. government bonds swung between small gains and losses Monday after data pointed to a rebound in manufacturing activity at the start of the month.
The yield on the benchmark 10-year Treasury note was recently at 2.558%, according to Tradeweb, compared with 2.560% Friday.
Yields, which rise as bond prices fall, initially ticked higher after the Federal Reserve Bank of New York's monthly survey of manufacturers showed a gauge of general business conditions picked up more than expected in April. That marked a rebound after the index fell to a nearly two-year low in March.
Upbeat economic data tends to chip away at demand for Treasurys, whose fixed payouts look most attractive when the growth outlook looks uncertain. Recent selling has sent the yield on the 10-year Treasury note to its highest level in roughly a month, a reversal after worries about uneven data at the start of the year drove Treasury yields lower.
Later this week, bond traders will get more insight on the economy with reports on industrial production, retail sales and housing starts scheduled for release. Corporate earnings season will also pick up, which some analysts believe could spur some volatility after a relatively quiet stretch for financial markets.
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