Treasurys Higher

Treasuries rebounded on Monday before tomorrow's release of economic data

Treasury yields were held above 4.50%, even as Treasuries were higher at the end of the day. Treasuries were rebounding from earlier lows on short covering before tomorrow's reports on Retail Sales, Business Inventories, Treasury International Capital Flow data and Greenspan's testimony to the Senate Special Committee on Aging on Social Security reform, according to S&P Marketscope. The market reacted to comments from the Fed's Yellen who said that rate hikes can continue to be "measured" and showed little worry about inflation. Trading on Monday was dominated by corporate supply. Retailers were nibbling at intermediates, according to Informa, with sellers of 3-years to buy bonds also noted.

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