TREASURIES-U.S. bonds edge up after Dow, S&P hit record highs
* Record highs on Wall Street restrain gains for safe-haven debt
* Retail sales, consumer price, home sales data due on Wednesday
NEW YORK, Nov 18 (Reuters) - U.S. Treasury debt prices made narrow gains on Monday, supported by the prospect of "easy" monetary policy, but limited by investors' clear preference for riskier assets in light of that accommodation.
U.S. stocks rose at the open on Monday, with the Dow and the S&P 500 extending record highs as trading continues to focus on economic stimulus from the Federal Reserve.
Action in the U.S. Treasury market was comparatively subdued, with the benchmark 10-year Treasury note up 4/32, leaving its yield at 2.695 percent.
"The Treasury market is trading slightly higher as bonds continue to react to comments from the likely next Fed Chairperson, Janet Yellen," said Kevin Giddis, senior managing director and head of fixed income capital markets head at Raymond James.
Better-than-expected October nonfarm payrolls numbers had returned the possibility of a taper to center stage, pushing 10-year yields up from 2.50 percent just before that report was released - to over 2.75 percent afterwards, he said.
"Then, like magic, Janet Yellen's confirmation testimony indicated she liked what the Fed was doing, and doesn't appear to be in a hurry to change the current policy. These comments helped move the yield back below 2.70 percent," Giddis said.
Besides the backdrop of monetary accommodation and the dynamics of markets for riskier assets, there was little else to guide the U.S. Treasury market.
Wednesday is the first day of the week offering a basket of fresh economic data. Figures on October retail sales, consumer prices, and home sales are due that day.
"Wednesday is when the fireworks could begin: Retail sales, the consumer price index, existing home sales and minutes from the October 29-30 Fed policy meeting could make trading U.S. government securities quite interesting," he said.
The 30-year bond was up 8/32 in price at 100-19/32 for a yield of 3.77 percent.
Dealers' demand to fund their Treasuries purchases this week has increased overnight borrowing costs in the repurchase agreement market. They were last quoted at 0.14-0.18 percent, which was the highest level in about three weeks. This compared with 0.11-0.14 percent late on Thursday.