S&P MARKETSCOPE: Treasuries fell in afternoon trading as Federal Reserve Chairman Alan Greenspan said in a letter to the Congress that a flattening yield did not necessarily signal a weak economy. This raised speculation that the chairman will reiterate the Fed's plan to reduce monetary policy accommodation in testimony later this week.
The 10-year note fell 13/32 to 99-09/32 for a yield of 4.21%. The 30-year bond tumbled 37/32 to 113-28/32 for a yield of 4.46%.
There was little reaction to Treasury International Capital System data in the morning that showed a modest rise in foreign purchases of U.S. Treasuries.