Treasury prices posted slight gains Monday, erasing earlier losses, as stocks compounded their losses while investors fretted about how the government will support financial institutions.
Ten-year note yields (UST10Y) slid 1 basis point to 2.78%, after earlier reaching 2.88% earlier. A basis point is 0.01%.
Yields on 2-year notes (UST2YR), which move inversely to prices, inched down 1 basis point to 0.94%, after having briefly risen above the 1% mark for the first time since Feb. 10.
Bonds retraced losses as U.S equities surrendered early gains, indicating continued concerns about the banking sector after the government detailed plans to begin "stress tests" of financial institutions.
"There are a lot more questions than answers right now," said Mario De Rose, a fixed-income strategist at Edward Jones & Co.
Safe havens such as U.S. government debt typically draw money from investors are shying away from riskier assets, like equities.
"The market is probably going to stay in a relatively narrow range until we get more answers about the banks," De Rose said.
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