US govt bonds close at highs as stock market declines

US government bond prices closed at their highest levels of the day, benefiting from declines in the share market and repositioning ahead of the three-day Martin Luther King observance, dealers said.

The bond market closed early for the holiday. At 2.00 pm, The 5.375% 30-year bond was at its highs, up 21/32 at 100-8/32 yielding 5.357%, the 5.0% 10-year bond up 10/32 at 100-27/32, yielding 4.888%, and the 3.0% 2-year bond up 2/32 at 100-22/32, yielding 2.878%.