MARKETSCOPE: Treasury bond prices closed narrowly mixed on Monday, in a session biased toward a flattening of the yield curve at the long end.
The 10-year note finished marginally lower at 100-16/32 for a yield of 4.44%, while the 30-year bond edged up 02/32 to 110-29/32 for a yield of 4.64%.
News hit that the National Association of Home Builders' index declined to a lower than expected 57 level in December from 61 in November, which was revised from 60 initially reported.
Tuesday there will be a November Housing Starts report, as well as news of the Producer Price Index.
Market players have been scrutinizing U.S. inflation and economic growth for months, as they make their bets on the direction of interest rates in 2006. The rate currently stands at 4.25%. The Federal Open Market Committee has already raised rates 13 times since 2004, in an effort to control inflation by making debt more expensive.