Bonds rose Tuesday as inflationary concerns eased on the back of a strengthening U.S. dollar.Two economic reports showing weakness in U.S. manufacturing and construction activity also drove investors to government bonds, viewed as safe havens in times of economic unrest.
The benchmark 10-year note rose 14/32 to 101 21/32 and its yield fell to 3.79% from 3.85% late Friday. Bond prices and yields move in opposite directions.
The U.S. markets were closed Monday in observance of the Labor Day holiday.
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