Treasury Bond Prices Rise

MARKETSCOPE: Treasury prices rose on Monday, amid concerns about high energy prices and short covering after price weakness last week.

The benchmark 10-year note rose 10/32 to 96-03/32 for a yield of 5.01%, while the 30-year bond climbed 13/32 to 91-05/32 for a yield of 5.08%.

Treasury capital data showed net foreign purchases unexpectedly rose to a 3-month high of $86.9 billion in U.S. assets in February, from a revised $69.1 in January.

The government said Industrial production rose 0.6% in March, above the 0.4% expected, but February was revised to +0.5% from +0.7%. For the first quarter as a whole, industrial production rose at an annual rate of 4.5%.

The New York Fed's Empire State manufacturing index fell to a lower than expected 15.81 in April from a revised 29.03 in March.

The Producer Price Index comes out Tuesday and the Consumer Price Index on Wednesday. Tuesday's Housing Starts data also could be a market mover.

"The pendulum of bearish market sentiment is close to reversing, as upcoming data are unlikely to validate elevated growth expectations," says Jan Hatzius, of Goldman Sachs in New York. "Although retail sales were better than expected in March, the platform for growth in the current quarter is still low."

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