Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Treasurys slip ahead of auction

By Hibah Yousuf, staff reporter


NEW YORK (CNNMoney.com) -- Treasury prices fell Tuesday, as the government offered $21 billion in 10-year notes and better-than-expected corporate results renewed investor confidence in riskier assets.

What prices are doing: The benchmark 10-year note was down 11/32 to 103-11/32 and its yield fell to 3.11% from 3.02% late Monday. Bond prices and yields move in opposite directions.

bonds.png

The 2-year note was edged down 1/32 to 99-30/32 with a yield of 0.67%, while the 5-year note lost 6/32 to 99-30/32 and yielded 1.89%.

The 30-year bond fell 21/32 to 104-26/32 with a yield of 4.10%.

What's moving the market: The Treasury Department is auctioning $21 billion in 10-year notes later Tuesday, as part of its $69 billion worth of notes and bonds this week in quarterly refunding.

Meanwhile, demand for the safety of U.S. government debt faded as investors regained confidence after Alcoa's (AA, Fortune 500) better-than-expected earnings report.

The aluminum giant posted second-quarter earnings that beat Wall Street's estimates and gave an upbeat forecast on aluminum demand.

What analysts are saying: "This is the first clean auction period we've had in a few months since investors aren't disturbed by the news as much as they were during the second quarter," said Jim Vogel, head of debt research at FTN Financial.

Vogel said investors are cheapening Treasurys to accommodate for the supply.  To top of page

Overnight Avg Rate Latest Change Last Week
30 yr fixed3.85%3.85%
15 yr fixed3.02%3.03%
5/1 ARM3.12%3.16%
30 yr refi3.83%3.81%
15 yr refi3.00%3.00%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 21,796.55 85.54 0.39%
Nasdaq 6,382.19 -40.56 -0.63%
S&P 500 2,475.42 -2.41 -0.10%
Treasuries 2.31 0.03 1.23%
Data as of 5:09am ET
Company Price Change % Change
Advanced Micro Devic... 14.12 -0.63 -4.27%
Facebook Inc 170.44 4.83 2.92%
Bank of America Corp... 24.11 -0.09 -0.37%
AT&T Inc 39.41 1.39 3.66%
Comcast Corp 39.43 0.08 0.20%
Data as of Jul 27

Sections

The Congressional Budget Office narrows its projection for when Treasury will run short on money if Congress doesn't raise or suspend the country's debt ceiling. More

All eyes are on Twitter each day. And yet that attention is not translating into any sustained growth in Twitter's user base. More