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

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.89%3.92%
15 yr fixed3.05%3.06%
5/1 ARM3.12%3.19%
30 yr refi3.95%3.97%
15 yr refi3.10%3.14%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 18,272.72 -13.02 -0.07%
Nasdaq 5,103.37 12.58 0.25%
S&P 500 2,130.89 0.07 0.00%
Treasuries 2.22 0.03 1.37%
Data as of 10:42am ET
Company Price Change % Change
Apple Inc 132.48 1.09 0.83%
Hewlett-Packard Co 35.32 1.49 4.40%
Bank of America Corp... 16.76 0.02 0.15%
AT&T Inc 34.87 -0.20 -0.57%
Micron Technology In... 27.49 0.59 2.19%
Data as of 10:27am ET

Sections

Philip Morris and British American Tobacco have filed lawsuits against the British government over a law that bans brands from cigarette packages. More

Chelsea Clinton took the stage during Internet Week New York to discuss a new report that looks at the state of women around the world. More

More than 3.5 million people's sexual preferences, fetishes and secrets have been exposed after dating site Adult FriendFinder was hacked. More

Sarah Kauss launched S'well to rid the world of plastic water bottles. In five years, she's sold 4 million of her stainless steel bottles. More

Rents increased 4% in April from last year while home values only rose 3% during the same time period. More