Treasurys prices mostly rise on weak housing data and ahead of Bernanke testimony

Treasurys mainly higher ahead of Bernanke comments

NEW YORK — Treasury prices mostly rose Tuesday as another weak report on the housing sector cast more doubt on the economic recovery.

The yield on the 10-year Treasury note was essentially flat at 2.96 percent, while its price edged up 3.125 cents to $104.594.

The Commerce Department had reported earlier that home construction plunged last month to the lowest level since October. That led to an early decline in stock prices and more interest in safe-haven investments.

Treasury prices started the day higher but gave up much of those gains as the stock market rebounded in early afternoon trading, leaving the Dow with a gain of 75 points at the end of the day after having been down as many as 140.

Traders were also anticipating that Federal Reserve Chairman Ben Bernanke may reaffirm the Fed’s newly revised estimates on the economy showing that the central bank now expects slightly slower long-term growth. The Fed chief addresses Congress on Wednesday.

In other trading, the yield on the 30-year bond was also unchanged at 3.98 percent, while its price edged down 9.375 cents to $106.781.

The two-year note was yielding 0.59 percent, down slightly from 0.60 percent the day before. Its price was essentially unchanged.

The yield on the three-month Treasury bill was also unchanged, at 0.15 percent. Its discount rate was 0.16 percent.