Bonds Higher

Bonds were higher Tuesday on soft economic data and a eurobond rally

Soft economic data and a eurobond rally moved Treasury prices higher Tuesday, despite firmer stocks, according to Informa. Tame PPI data and weaker housing data signaled little inflation in the economy and less pressure on the Fed to tighten monetary policy. As a result the 10-year Treasury yield sunk to a two-month low, according to S&P Marketscope. GM negative earnings news also helped to inspire flight-to-safety buying, according to Informa. The Fed's discount rate meeting minutes added a boost to Treasuries, as it showed more of a split at the Fed than previously thought.

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