Treasurys head for a 2nd down week
Prices for U.S. debt sink as investors brace for $115 billion worth of auctions next week.
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| Click the chart for current bond prices and yields. |
NEW YORK (CNNMoney.com) -- Treasury prices fell Friday, capping a second week of declines, as the government prepares to auction a record amount of U.S. debt and demand for safe-haven assets wanes.
The Treasury Department said Thursday that it will offer a total of $115 billion in notes and Treasury Inflation Protected Securities next week. That comes after the government offered $104 billion in June, which was a record at that time.
Stocks were headed for a mixed open Friday after surging to their highest level of the year on strong corporate earnings and improved economic data.
"The market will have to cheapen to digest supply as risk aversion has faded in the wake of corporate profit reports," said analysts at MF Global in a research report.
The government has auctioned record amounts of debt to help pay for its economic stimulus efforts and fund a growing deficit. Analysts say the rising tide of Treasurys coming to the market could eventually overwhelm demand and drive prices lower.
At the same time, prices for ultra-safe U.S. debt securities often fall when stock prices rise as investors seek higher returns in more risky ventures.
Auctions: The government will offer $6 billion in 20-year TIPS on Monday.
On Tuesday, it will auction $42 billion in 2-year notes, followed by $28 billion in 7-year notes Thursday, and $39 billion in 5-year notes Friday.
Bond prices: The benchmark 10-year note was down 2/32 to 95-18/32 and yielded 3.67%, up from 3.65% Thursday. Bond prices and yields move in different directions.
The 30-year bond fell 4/32 to 95-1/32 and yielded 4.56%.
The 2-year note dipped 1/32 to 100-6/32 and its yield was 1.03%.
The 3-month bill yielded 0.16%.
Lending rates: Bank-to-bank lending rates remained near record lows as credit conditions ease among financial institutions.
The three-month Libor was unchanged from Thursday at 0.5%, according to Bloomberg.com. The overnight Libor rate held steady at 0.23%
The London Interbank Offered Rate -- or Libor -- is a daily average of rates that 16 different banks charge each other to lend money, and is used to calculate adjustable-rate mortgages. More than $350 trillion in assets are tied to Libor. 
