MARKETSCOPE : Treasury bond prices dropped Monday as investors continued wondering what happens next to interest rates.
The benchmark 10-year note eased 03/32 to 99-28/32 for a yield of 5.14% near closing time. The 30-year bond fell 06/32 to 89-23/32 for a yield of 5.18%
Atlanta Fed President Guynn warned about the evils inherent in the U.S. fiscal deficit, saying the U.S. should focus on a long-term budget fix by spending less or raising revenues. He also said global oil supply and demand are to rebalance, though he expects high prices to remain a fact of life.
The Federal Open Market Committee meets on June 29, after having already raised rates many times since 2004 in an effort to control inflation.