Dated treasurys gain after $41 billion auction
U.S. debt prices were mixed as government offers a record $123 billion in debt this week.
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NEW YORK (CNNMoney.com) -- Longer term treasurys advanced Wednesday after the government sold $41 billion in 5-year notes, as economic fears boosted demand for the safety of U.S. debt.
The auction was part of a record $123 billion offering of U.S. debt this week. The government sold $44 billion in 2-year notes on Tuesday and will offer $31 billion worth of 7-year notes Thursday.
Wednesday's auction received strong demand. Investors submitted bids totaling $107.8 billion for the $41 billion worth of 5-year notes offered.
The bid-to-cover ratio, which measures demand, was 2.63. That compares with 2.4 at the previous 5-year auction in September and a 2009 average of 2.24.
Indirect bidders, a category that includes foreign central banks, bought 55% of the securities sold.
This week's debt sales are the latest in a string of record-sized auctions the government has held this year to fund its economic stimulus efforts and budget deficit.
While demand for U.S. debt has been strong, many analysts say the constant onslaught of new issues could eventually weigh on Treasury prices.
Housing pain. Meanwhile, government figures showed that new home sales fell unexpectedly in September after rising for five straight months.
Sales of newly built homes fell 3.6% to a seasonally adjusted annual rate of 402,000 last month, from a downwardly revised rate of 417,000 in August, according to the Commerce Department.
Economists surveyed by Briefing.com had expected September new home sales to rise to a rate of 440,000 units.
A separate government report showed that new orders for durable goods rose 1% in September, which was in line with economists' expectations.
Bond prices. The benchmark 10-year note was up 8/32 to 101 24/32 and its yield slid to 3.418% from 3.448% late Tuesday. Bond prices and yields move in opposite directions.
The newly issued 2-year note eased 1/32 to 100 4/32. Its yield rose to 0.949% from a median yield of 0.980% at Tuesday's auction.
The 30-year bond gained 9/32 to 104. Its yield was 4.263%.
The yield on the 3-month bill was 0.066%. 
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