Yields down in light trade

US Treasury bond prices rose and yields fell in light trade as UK markets took a holiday and many investors took the week off ahead of next Monday’s Labor Day holiday in the United States.

Prices rose as concerns about weakness in the US economy persisted when new data showed that existing homes sales dropped in July for the fifth month in a row, the inventory of pre-owned single-family homes stood at 4.59 million, a gain of 5.1 percent to the highest level since 1991, and home prices fell for the twelfth month in a row.

Two-year yields were steady at 4.28 percent, but yields on five-year notes were down to 4.4 percent.

Ten-year paper was yielding 4.61 percent, while thirty-year bond yields dropped from 4.89 percent on Friday to 4.87 percent.

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