Treasurys Higher

Treasuries were higher on Tuesday after recovering from a drop in prices on Monday

S&P MARKETSCOPE: Treasuries were higher on Tuesday, after recovering from Monday's drop. February manufacturing ISM fell to 55.3 from 56.4 in January, missing the 57.0 consensus and marking a 17-month low. Prices index, an inflation gauge, fell to 65.5 from 69.0 in January, adding downward pressure on Treasury yields. ISM data offset a 0.7% rise in January construction spending. Despite the ISM data, gains in long maturities expected to be limited as trades aimed at flattening the yield curve are unwound ahead of Fed Chairman Greenspan's testimony to the House Budget Committee tomorrow.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.