Prices of Treasury securities continued falling and interest rates moving higher, as dealers sold notes and bonds after a stronger-than-expected report on May employment data.

The improvement took place in spite of a rise in equity prices and stronger-than-expected economic reports, especially a report on new-home sales for February.

The Treasury market, hurt by a stronger-than-expected economic report yesterday, fought off the temptation of a full retreat but gave up some ground.

Prices of Treasury securities tumbled yesterday after stronger-than-expected reports on manufacturing and construction showed a rebounding economy.

The Dow opened weakly after the Labor Department released a stronger-than-expected report on the nation's January employment.

They also noted that stronger-than-expected economic reports were also a factor behind higher short-term interest rates during the holiday period.

Also putting pressure on the market was a stronger-than-expected report from the National Association of Purchasing Management.

The dollar also drew some support from a stronger-than-expected report on retail sales, which could discourage the Federal Reserve from lowering interest rates.

A stronger-than-expected report on new-home sales for July and an earnings warning from a big personal automobile insurer combined to raise anxiety during morning trading.

Nervousness about a Clinton victory and a stronger-than-expected report from purchasing managers were among the reasons cited by traders.