LONDON Nov 19 U.S. bond prices fell on Monday
after lawmakers appeared more willing to reach a deal to avert
automatic fiscal tightening measures that would threaten an
already shaky global economic recovery.
* Leading Republican and Democrat lawmakers expressed
confidence on Sunday that they could avert the $600 billion
"fiscal cliff" of tax hikes and spending cuts even as they stuck
to their positions.
* Benchmark 10-year T-note yields rose 2.2 basis
points to 1.6063 percent, off a two-month low of 1.5560 percent
hit last week. T-note futures were 8/32 lower at
133-29/32 as riskier assets, such as stocks, firmed.
* "People are getting more optimistic ... that we won't be
driving off the cliff," said Craig Collins, a trader at Bank of
* Hostilities between Islamist militants and Israel
continued on Monday, making investors wary of geopolitical risk
and limiting losses for safe-haven assets such as German Bunds
and U.S. Treasuries.
* Traders said uncertainty over the payment of aid to Greece
and over how long Spain will take to request a bailout from its
fellow euro zone members was also preventing a steeper rise in