TREASURIES-U.S. bonds trim gains after ISM manufacturing report
NEW YORK, March 1 (Reuters) - U.S. Treasuries trimmed price gains on Friday after an industry report showed the pace of growth in the U.S. manufacturing sector rose to its fastest rate in more than a year and a half in February.
The benchmark 10-year Treasury note, up 10/32 before the report, was up just 8/32 afterwards. Its yield stood at 1.85 percent.
The Institute for Supply Management said its index of national factory activity rose to 54.2 from 53.1 in January, topping economists' forecasts for a pullback to 52.5. It was the highest level since June 2011.
A reading above 50 indicates expansion in manufacturing. The sector lost traction in the second half of last year and contracted in November in the wake of the massive storm that hit the U.S. Northeast.