US govt bonds continue lower in afternoon trade

US government bond prices continued lower in afternoon trade after the Philadelphia Fed business activity index rose sharply, breaking into positive territory for the first time in more than a year, dealers said.

At 1.54 pm, the 5.375% 30-year bond was down 26/32 at 99-16/32 yielding 5.407%, the 5.0% 10-year bond fell 22/32 to 100-24/32, yielding 4.927%, and the 3.0% 2-year bond was down 8/32 at 100-19/32, yielding 2.926%.