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Treasurys turn lower on upcoming supply

By Hibah Yousuf, staff reporter


NEW YORK (CNNMoney.com) -- Treasury prices gave up gains and turned lower Thursday after the Treasury announced a fresh supply of U.S. debt to be auctioned next week.

What prices are doing: The benchmark 10-year note fell 9/32 to 98-25/32, pushing the yield up to 3.78% from from 3.75% late Wednesday. Bond prices and yields move in opposite directions.

10yearyield.png
Click the chart for the latest prices and yields.

The 30-year bond slipped 11/32 to 99-25/32, and its yield rose to 4.64%.The 2-year note shed 2/32 to 99-30/32 with a 1.04% yield. The 5-year note was down 7/32 to 99-27/32 with a yield of 2.54%.

What's moving the market: Early in the session, a safety bid for U.S. Treasurys gained traction after a report from the European Union suggested that Greece's 2009 deficit was bigger than the government reported. The credit rating agency Moody's downgraded Greece's debt to a lower investment grade, and initiated a further review.

But the rally for U.S. debt lost steam following an announcement about upcoming supply. The Treasury said it will auction $129 billion in securities next week.

What analysts are saying: "There are different forces at work here," said David Coard, head of fixed income trading at the William Capital Group.

He said that earlier in the day, the continued worry about Greek debt was dominant and prompted safe haven buying of Treasurys.

But those fears abated throughout the day as investors focused on the upcoming supply.  To top of page

Overnight Avg Rate Latest Change Last Week
30 yr fixed4.02%3.99%
15 yr fixed3.16%3.18%
5/1 ARM3.31%3.40%
30 yr refi4.06%4.01%
15 yr refi3.18%3.20%
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Index Last Change % Change
Dow 19,756.85 142.04 0.72%
Nasdaq 5,444.50 27.14 0.50%
S&P 500 2,259.53 13.34 0.59%
Treasuries 2.46 0.08 3.23%
Data as of 8:12pm ET
Company Price Change % Change
Bank of America Corp... 23.09 0.14 0.61%
Ford Motor Co 13.17 0.14 1.07%
Chesapeake Energy Co... 7.72 0.12 1.58%
Twenty-First Century... 28.21 -0.43 -1.50%
Apple Inc 113.95 1.83 1.63%
Data as of 4:15pm ET

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