Bonds Drift Higher Early Monday, Monday, June 18, 2007 8:58:53 AM

Bonds edged higher at the outset of Monday`s trading, driving yields lower. This continued a process that marked most of end of last week, as the 10-year yield came further off its recent multi-year high.

After touching a level above 5.31% last Wednesday, tame core inflation data prompted bargain hunting in the fixed income market. There was no major economic news to drive Monday`s early action, but traders continued to reverse some of the bets they made on higher interest rates during May and early June.

The yield on the benchmark 10-year treasury slipped 3.1 basis points to reach 5.140%.

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