Treasurys little changed
Government debt prices hold steady ahead of a couple of Fed purchase operations.
NEW YORK (CNNMoney.com) -- Government debt prices traded in a tight range Tuesday ahead of the Federal Reserve's next two purchase operations.
The benchmark 10-year note edged down 1/32 to 95-13/32 and its yield held near 3.68%. Bond prices and yields move in different directions.
The 30-year bond was flat at 95-13/32 and its yield held at 4.54%.
The 2-year note ticked up less than 1/32 to 99-27/32 and its yield stood at 0.96%. The yield on the 3-month rose to 0.14% from 0.12%.
To create demand and put a lid on rising yields, the government has been buying back its own debt, a program called quantitative easing. The central bank was scheduled to conduct its next two purchase operations Wednesday and Thursday.
The amount of debt the government will buy at each auction is undisclosed, but analysts are skeptical that the government can manage to buy enough debt to even temporarily manage interest rates.
Treasury prices plummeted Monday as the Dow Jones industrial average surged more than 200 points after strong economic data. The 30-year bond fell more than 3 points Monday and the benchmark 10-year note fell 2 points.
In recent months, debt prices have been trending lower, sending yields higher, as stocks have pushed toward 2009 highs. Trading was choppy on Wall Street Tuesday, holding in a tight range, and price fluctuations in the bond market were muted.
Also contributing to the debt price slide of recent months is the fact the government is spending at a rapid clip to jolt the economy out of recession.
To fund that rescue effort, the Treasury has been issuing massive amounts of debt. The Treasury is scheduled to announce the size of the reopening of the 10-year and 30-year auctions, in addition to the size of the upcoming 3-year sale. The debt will go on the block next week.
Geithner in China: With continued healthy demand for foreign buyers critical to the market, Treasury Secretary Timothy Geithner told officials in China that the government's deficit spending program is not permanent.
China has expressed concern over the creditworthiness of the United States and the corresponding value of the dollar and its national investments in U.S. country's debt.
Geithner also said that the U.S. government is dedicated to keeping inflation in check in the long time.
Lending rates: One key bank-to-bank lending held steady at its record low. The 3-month Libor was unchanged at 0.65% Tuesday, according to Bloomberg.com. The overnight Libor rate was also unchanged, holding steady at 0.26%.
Libor, the London Interbank Offered Rate, is a daily average of rates that 16 different banks charge each other to lend money in London. The closely watched benchmark is used to calculate adjustable-rate mortgages. More than $350 trillion in assets are tied to Libor. 
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