US govt bonds off lows

US government bonds were off lows after a weaker-than-expected US industrial production report helped the market reverse some of its earlier losses on news that Iraq has agreed to allow UN weapons inspectors back into the country.

At 9.21 am, 10-year notes were down 3/16 yielding 3.93%, 30-year bonds were down 9/16 yielding 4.79%, and two-year notes were off 1/16 yielding 2.11%. Bills were mixed.