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 fixed3.99%4.02%
15 yr fixed3.18%3.16%
5/1 ARM3.40%3.38%
30 yr refi4.01%4.07%
15 yr refi3.20%3.19%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 19,170.42 -21.51 -0.11%
Nasdaq 5,255.65 4.55 0.09%
S&P 500 2,191.95 0.87 0.04%
Treasuries 2.39 -0.05 -2.09%
Data as of 1:49pm ET
Company Price Change % Change
Bank of America Corp... 21.23 -0.27 -1.26%
Chesapeake Energy Co... 7.23 0.18 2.55%
Ford Motor Co 12.24 -0.19 -1.53%
Freeport-McMoRan Inc... 15.42 0.39 2.59%
Cisco Systems Inc 29.25 -0.20 -0.68%
Data as of Dec 2

Sections

Increased health coverage through Obamacare and greater use of health care services accounted for the nearly 6% rise of national health spending in 2015, which approached $10,000 per person. More

Facebook admits it messed up more ad metrics than previously thought, potentially eroding its trust and relationship with marketers and publishers. More