US Treasuries
The 10-year Treasury note fell 2/32, its yield rose to 4.46%.
US STOCK MARKET
The U.S. stock markets closed higher on Monday on good news from AIG and Morgan Stanley.
The Dow Jones Industrial advanced 14.63 points, or 0.14%, to 10,418.93. The Nasdaq Composite rose 7.74 points, or 0.39%, to 1,992.55. The S&P500 added 3.35 points, or 0.29%, to 1,176.27.
Shares of Morgan Stanley rose more than 3% after the investment bank reported that the bank's board approved the sale of its Discover Card unit.
Shares of AIG rocketed after New York Attorney General Eliot Spitzer said in a statement that the company’s management "are now cooperating with this investigation."
FOREX
In the currency market, the euro fell to $1.2851 from $1.2921 in New York late Friday. The dollar advanced to 108.30 yen, from $107.55 yen.