Treasurys mixed after 10-year note sale

Click the chart for current bond prices and yields.

Hot Stocks

• What's moving the markets
• Dow 30
• Widely held stocks

Are things really getting better?

Last quarter, the economy grew by the largest amount since the summer of 2007, but there are signs that things are still getting worse.

View photos

NEW YORK (CNNMoney.com) -- Treasurys were mixed Tuesday after the most recent auction in this week's record $81 billion offering of U.S. debt drew strong demand.

"Despite record supply and concern about out-of-control government spending, the Treasury continues to be able to borrow on favorable terms," said Dan Greenhaus, chief economic and bond strategist at Miller, Tabak & Co in New York.

This week's auction was the latest in a string of record-sized debt sales that the government has held this year to help fund its economic stimulus efforts and a growing budget deficit.

While many analysts worry that the ongoing flood of new issues could eventually undermine demand for Treasurys, investors continue to have a healthy appetite for U.S. debt.

Investors submitted bids totaling almost $70 billion for the $25 billion worth of 10-year notes sold Tuesday.

The bid-to-cover ratio, which measures demand, was 2.81. That compares with a long-term average of 2.34, according to MF Global.

Indirect bidders, a category that includes foreign central banks, bought nearly 47% of the notes.

The government also received strong demand at Monday's $40 billion sale of 3-year notes.

Prices for 30-year notes eased slightly Tuesday as investors brace for Thursday's $16 billion sale of the 30-year bond.

Treasury prices were higher before the auction amid a lack of economic news. Stocks were lower in afternoon trade following a triple-digit rally in the previous session.

The bond market will be closed Wednesday in observance of Veterans Day.

Bond prices. The newly issued 10-year note was priced at 99-6/32 at Tuesday's auction, with a median yield of 3.42%. Prices continued to rise after the auction, with the yield on existing 10-year notes falling to 3.47% from 3.48% late Monday. Bond prices and yields move in opposite directions.

The 2-year note rose 1/32 to 100-10/32 with a yield of 0.85%.

The 30-year bond was unchanged at 101-21/32. Its yield was 4.39%.