Treasurys rise after $20 billion auction
Prices climb as the market works its way through a $78 billion offering of U.S. debt this week.
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NEW YORK (CNNMoney.com) -- Treasurys held gains Wednesday after the most recent phase of this week's $78 billion offering of U.S. debt received above-average demand.
Investors submitted more than $60 billion worth of bids at Wednesday's $20 billion sale of reopened 10-year notes.
The bid-to-cover ratio, a measure of demand, was a healthy 3.1. That compares with 2.77 at the last auction of 10-year notes in September and a long-term average of 2.42.
Indirect bidders, which include foreign central banks, bought 47.5% of the notes sold.
On Tuesday, the government sold $39 billion worth of 3-year notes in addition to $7 billion worth of Treasury Inflation Protected Securities sold Monday. The U.S. will offer $12 billion in reopened 30-year bonds Thursday.
This week's offering is the latest in a string of record sized debt sales the government has held this year to pay for its economic stimulus efforts and service a growing budget deficit.
Demand for Treasurys has been relatively healthy at recent auctions. But many analysts worry that buyers will eventually lose their appetite for U.S. debt as the government continues to flood the market with supply.
Meanwhile, the Federal Reserve on Wednesday bought $1.3 billion worth of Treasurys maturing between May 2012 and July 2024. The U.S. central bank, which launched a plan to buy $300 billion worth of Treasurys earlier this year, has less than $15 billion left to spend.
Bond prices. The benchmark 10-year note was up 17/32 to 103-20/32 and its yield fell to 3.2% from 3.25% late Tuesday. Bond prices and yields move in opposite directions.
The 2-year note gained 2/32 to 100-8/32 with a yield of 0.87%.
The 30-year bond rose 1-2/32 to 108-17/32. Its yield was 4.01%.
The yield on the 3-month bill was 0.06%. 
