NEW YORK (AP) -- Treasury prices fell Tuesday, sending their yields higher, following weaker demand at an auction for three-year notes and increasing optimism that Greek leaders will agree on a cost-cutting package.
The yield on the benchmark 10-year Treasury note rose to 1.98 percent, up from 1.90 percent late Monday. Its price fell 59 cents per $100 invested.
The Treasury Department sold $32 billion of three-year notes at a rate of 0.35 percent. There were $3.30 worth of bids for every dollar sold, compared with $3.73 in the last auction in January. That's a signs that demand for the notes wasn't quite as strong this time.
The government will also auction $24 billion of 10-year notes on Wednesday and $16 billion of 30-year bonds on Thursday.
Bondholders signaled progress in talks with Greece over restructuring the country's debt, raising hopes that the country may succeed in avoiding a messy default. However negotiations among Greek leaders on more cost-cutting measures dragged into another day.
In other trading, the yield on the two-year bill rose to 0.25 percent from 0.23 percent. The yield on the 30-year bond rose to 3.15 percent from 3.09 percent. Its price fell $1.
The three-month T-bill paid a yield of 0.08 percent, up slightly from 0.07 percent Monday.
There are no comments yet