Treasurys mixed ahead of auctions

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NEW YORK (CNNMoney.com) -- Treasury prices mostly fell Monday, with the 10-year note holding modest gains, as the government prepares to sell $81 billion worth of debt this week and as stock markets advanced, undermining demand for safe haven assets.

The government will offer $40 billion in 3-year notes Monday, followed by $25 billion in 10-year notes and $16 billion in 30-year bonds later in the week.

"These auctions should go well because foreign demand remains strong and the market needs the bonds," said Kevin Giddis, managing director of fixed-income at Morgan Keegan.

The government has held a series of record-sized auctions this year to finance its economic stimulus efforts and record budget deficit.

While demand for Treasurys has been strong, many analysts worry that investors will eventually lose their appetite for U.S. debt as the government floods the market with new issues.

Meanwhile, stocks opened higher amid talk about some major deals in the works. Gold prices rose to an all-time high as the U.S. dollar weakened broadly against rival currencies.

Bonds rallied Friday, paring a weekly decline, after the U.S. government said the nation's unemployment rate rose to 10.2% -- its highest level since April 1983.

Bond prices. The benchmark 10-year note was up 1/32 to 101-2/32 and its yield fell to 3.49% from 3.50% late Friday. Bond prices and yields move in opposite directions.

The 2-year note fell less than 1/32 to 100-9/32 with a yield of 0.86%.

The 30-year bond lost 4/32 to 101-18/32. It's yield was 4.41%.