Treasurys decline after sale of 30-year bonds

NEW YORK (CNNMoney.com) -- Treasury prices fell Thursday following the sale of $13 billion in 30-year bonds and as concerns about Greek debt eased.

What prices are doing: The benchmark 10-year note fell 7/32 to 97-27/32 and its yield rose to 3.89% from 3.85% late Wednesday. Earlier this week, prices on the 10-year note fell and investors saw a 4% yield -- the first time the note had reached that level since October 2008, the height of the financial crisis.

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Bond prices and yields move in opposite directions, so when prices drop, yields rise.

On Thursday, the 30-year bond slipped 4/32 to 97-29/32 and yielded 4.75%. The 2-year note edged down 1/32 to to 99-8/32 and yielded 1.07%. The 5-year note slipped 5/32 to 98-31/32 and yielded 2.64%.

What's moving the market: Demand for U.S. Treasurys declined Thursday after European Central Bank president Jean-Claude Trichet eased worries about Greek debt problems, helping to renew investors' appetite for riskier assets.

He said default "is not an issue."

The Treasury Department completed the last of four auctions totaling $82 billion this week. Investors bid $35.5 billion on $13 billion worth of 30-year bonds Thursday.

Though the demand was strong, it was not as solid as the week's previous sales.

Wednesday's auction of $21 billion in 10-year notes drew $78 billion in bids from investors. The notes were reissued with a February 16 start date, at a 3.87% median yield -- an attractive rate to investors, especially if it heads back up to the 4% mark, as many analysts suspect it will.

The bid-to-cover ratio, which measures demand, was 3.72, up significantly from the 2.67 seen at the original auction two months earlier.

Earlier Thursday, Greek bonds dropped for a seventh day, renewing concerns that the country will default on its debt. Greece is trying to raise $15.4 billion to fund its budget deficit by the end of May. Sovereign debt worries in other countries tend to U.S. debt a more appealing purchase for foreign investors.

U.S. Treasurys are viewed as a "safe-haven" investment because unlike riskier assets like stocks, they come with a government guarantee.

What analysts are saying: Jonathan Lewis, principal of Samson Capital Advisors expects the Treasury market will continue to take its cue from overseas equities until next week.

Investors are likely to refocus on domestic events when the Labor Department releases its latest consumer price index on Wednesday, he said.