Treasurys rise more, dollar recovers

Treasury prices gained and the dollar recovered some ground against the euro on Monday while several financial markets in Asia, Europe and the U.K. remained closed. On Friday, a U.S. report showed the economy added far fewer jobs than anticipated in March, raising concerns about the health of the economy’s recovery. That added to some expectations that the Federal Reserve may have reason to start a third round of quantitative easing, which benefits bonds and tends to weigh on a country’s currency. “What the recent bout of data does is restore some odds of QE3,” said David Ader and Ian Lyngen, bond strategists at CRT Capital Group. Yields on 10-year notes 10_YEAR -0.97% , which move inversely to prices, fell 2 basis points to 2.03%, adding to Friday’s drop. After declining in the last trading session, the dollar index DXY +0.11% , which tracks the dollar against a basket of other major currencies, rose to 79.949, versus 79.840 Friday. The euro EURUSD -0.30% traded at $1.3070, down from $1.3092 Friday. Against the Japanese yen, the dollar USDJPY -0.20% fell to its lowest level in a month and lately traded at ¥81.40, down from ¥81.55 in late North American trading on Friday.