U.S. Treasury prices gained on Monday after data showing manufacturing activity in New York state plunged to its weakest level in August since 2009, raising concerns the weakness may weigh on broader U.S. economic growth indicators.
The New York Fed's Empire State general business conditions index tumbled from 3.86 in July to -14.92 in August, its lowest since April 2009, due to steep drops in new orders and shipments. Economists polled by Reuters had expected the index to rise to 5.00 this month. A reading above zero indicates expansion.
"Some people are talking about it in regards to what this means for the broader manufacturing indexes at the beginning of next month," said Thomas Simons, a money market economist at Jefferies in New York.
Benchmark 10-year note yields were last down 3 basis points to 2.17 percent, down from 2.18 percent before the data.