Treasurys ease on currency and rate concerns

NEW YORK (CNNMoney.com) -- Treasury prices fell Wednesday, their recent sharp run-up interrupted by concerns about the U.S. dollar and the size of anticipated rate cuts.

The dollar sank to an all-time low against the euro Wednesday amid expectations that the Fed will soon cut rates by as much as half a percentage point.

The benchmark 10-year Treasury note closed down 9/32 at 102 23/32 with a yield of 4.41 percent, up from 4.36 percent in late trade Tuesday. Prices and yields move in opposite directions.

The 30-year long bond fell 15/32 to 105 1/32 with a 4.69 percent, against 4.65 percent late Tuesday.

The 2-year note finished down 1/32 at 100 4/32 with a 3.95 percent yield, up from 3.93 percent.

The yield on 3-month Treasury bills ended at 3.93 percent, down from 4.01 percent on Tuesday, as the discount rate dropped 0.03 percentage point to 3.93 percent.

Bond prices in Europe and Asia fell earlier in the session.

Wall Street was little changed Wednesday, but a big rally Tuesday, when the Dow Jones industrial average rose 180 points, helped draw money out of the bond market.

Moreover, Treasurys, which for much of the summer were vastly preferred by investors over riskier investments, finally are getting competition from new corporate offerings.

Oil prices flirted with fresh records above $79 a barrel and gold prices slipped.

In currencies, the 13-nation euro rose as high as $1.3889 in afternoon European trading - breaking through its previous record of $1.3852, reached on July 24. That compared with the $1.3832 it bought in New York late Tuesday.

The dollar was little changed on Wednesday against the British pound, which edged up to $2.0321 from its level of $2.0317 in New York late Tuesday.

The U.S. currency was lower against the Japanese yen, even as Prime Minister Shinzo Abe announced that he would resign, putting an end to his troubled year-old government. The dollar slid to ¥113.85 from ¥114.30.