NEW YORK (AP) — Investors abandoned the safety of government bonds on signs that the U.S. economy was picking up.
U.S. manufacturing grew last month at the fastest pace in 10 months. New orders, production, and a measure of hiring rose, according to the Institute for Supply Management, a trade group of purchasing managers.
Separately, the Commerce Department reported Tuesday that construction spending edged up 0.1 percent in March after two months of declines. U.S. Treasurys are viewed as one of the safest investments in the world and usually fall in value when investors feel less anxious.
The price of the benchmark 10-year Treasury note fell 31.2 cents for every $100 invested. The yield on the note rose to 1.95 percent from 1.92 percent late Monday.
The 30-year Treasury bond fell 62.5 cents for every $100 invested. Its yield rose to 3.15 percent from 3.11 percent.
The yield on the two-year Treasury note rose to 0.27 percent from 0.26 percent. The yield on the three-month Treasury bill was unchanged at 0.09 percent.