US Treasury yields climb after China data

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U.S. Treasurys yields mostly rose on Monday after Chinese economic data boosted hopes among investors that slowing overseas growth will not drag on America's long-running expansion.

In lackluster trading at start of this week's deluge of corporate earnings that traders will comb for hints on the health of the U.S. economy, yields on shorter maturities were mixed.

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China's economic growth dipped below 7 percent for the first time since the global financial crisis, hurt partly by cooling investment, according to a report by the National Bureau of Statistics.


The world's second-largest economy grew 6.9 percent between July and September from a year ago, slightly better than forecasts of a 6.8 percent rise but down from 7 percent in the previous three months.

"That gave the market some hope that we will not see that much of a drag domestically from the overseas slowdown," said Larry Milstein, head of U.S. government and agency trading at R.W. Pressprich & Co in New York.

Treasurys also got lift from data in the National Association of Home Builders' October Housing Market Index (HMI), which showed a three-point jump to 64, a new 10-year high.

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Trading in Treasurys was slow, with few significant U.S. economic reports on tap this week and little news expected from Federal Reserve policymakers contemplating raising near-zero borrowing rates for the first time in nearly a decade.

"The week will be dominated by earnings," Milstein said. "We have about 120 of the S&P 500 reporting this week, and that will be an important driver for our market."

U.S. 30-year bond yields were last fat at 2.88 percent, compared to a yield of 2.86 percent late Friday.

U.S. three-year Treasury notes were up 1/32 in price to yield 0.89 percent from a yield of 0.90 percent late Friday. U.S. five-year notes were down 2/32 to yield 1.35 percent.

The 10-year Treasury note yield was last flat at 2.03 percent.

—Reuters contributed to this report.