The August New York Fed Index eased to 23.04 from 23.91 in July, beating the expected 19.0. Profit taking after a big rally Friday also contributed to bond market weakness.
The 10-year note fell 07/32 to 99-26/32 for a yield of 4.27%. The 30-year bond sank 12/32 to 113-23/32 for a yield of 4.47%.
Market activity was partly driven by positioning ahead of the CPI, housing starts, and industrial production data tomorrow.