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Treasurys shed morning losses Monday after a reading on business conditions came in below expectations, pushing investors into safe-haven government debt as markets watch for any signals about how data will impact central-bank monetary policy. A gauge from the Institute for Supply Management showed contracting manufacturing for the first time since last fall. The reading came in at 49.0%, below expectations of 51.0%. Readings over 50 indicate growth. Less risk-taking impacts U.S. economy Fewer Americans are changing jobs. Companies are hoarding more cash. And the proportion of new businesses has fallen. The result? A less dynamic economy. Ben Casselman joins the News Hub. Photo: Getty Images As Treasurys prices rose, the yield on the 10-year Treasury note 10_YEAR -1.31% fell 3 basis points to 2.102%. The 30-year bond 30_YEAR -0.52% yield fell 2 basis points to 3.263%, and the 5-year note 5_YEAR -2.44% yield fell 2.5 basis points to 1.493%. Federal Reserve Chairman Ben Bernanke suggested in May the central bank could begin tapering its monetary-stimulus program in the next few meetings of the central bank if positive data suggest an improving economy. That has put the Treasury market on alert for signs of improvement, creating volatility around economic data. That volatility helped push the 10-year Treasury yield nearly 50 basis points higher during the course of May in the worst month for the benchmark note since December 2010. On Monday, Federal Reserve Bank of San Francisco President John Williams reiterated Bernanke's tone in a speech, indicating that he will consider supporting tapering in the next few months if the economy continues to improve. Williams is a nonvoting member of the Federal Open Market Committee this year. Markit's final manufacturing purchasing managers' index rose to 52.3 in May from 52.1 in April, data showed Monday, suggesting a modest if lackluster rate of growth. The initial "flash" reading of the PMI had suggested a 51.9 reading. The Labor Department's nonfarm payrolls report for May will be released on Friday. The Fed has indicated it wants to see unemployment continue to fall before it changes monetary policy. Despite the disappointing ISM data, stocks moved higher in a reversal from Friday's losses. The Dow Jones Industrial Average DJIA +0.36% gained 78 points and the S&P 500 index SPX -0.03% rose 4 points