The 10-year Treasury notes rose 02/32 at 100-10/32 for a yield of 4.46%. The 30-year bonds rose 09/32 at 110-24/32 for a yield of 4.646%.
News hit that the Phil. Federal Reserve's manufacturing index fell to 11.5 in November from 17.3 in October, when it had soared 15 points, reflecting a slower rate of expansion. The employment index rose to 19.1 from 17.0. In addition, housing starts fell 5.6% to a 2.014 million annual rate in October, from 2.134 million in September. The Street was looking for a decline to 2.073 million.