NEW YORK (CNNMoney.com) -- Treasury yields moved slightly higher Wednesday after investors showed robust demand in the last auction in the Treasury's offering of $100 billion in newly-printed U.S. debt this week.
The yield on the benchmark 10-year note rose to 2.50% from 2.46% late Tuesday. The yield on the 30-year bond edged up to to 3.68%. The 5-year note yielded 1.28%, while the 2-year note's yield edged up to 0.44%.
The government sold $29 billion in 7-year notes in the afternoon. Earlier this week, the Treasury sold $36 billion in 2-year notes and $35 billion in 5-year notes.
Investors submitted bids totaling $88.2 billion at Wednesday's auction. The bid-to-cover ratio, a measure of demand, was 3.04. That compares with 2.98 at the last 7-year sale in August.
"We've gotten through all the supply, and there was strong demand for Treasurys in each auction, so this downtrade is a little surprising," said Richard Bryant, head of Treasury trading at MF Global. "But the moves are fairly muted, and the Treasury market is still very well supported."
Earlier in the week, yields were under pressure as concerns about the economic recovery triggered a strong bid for bonds, and yields on short-term Treasurys remain near historic lows.
Since Treasurys are backed by the U.S. government, they are viewed as low-risk investments. Demand for government debt is typically stronger during times of uncertainty.
Investors will continue to scrutinize upcoming economic data, and Bryant said Treasury yields may slide further if reports show that conditions remain weak and the Federal Reserve buys more Treasurys in an effort to stimulate the economy.
Overnight Avg Rate | Latest | Change | Last Week |
---|---|---|---|
30 yr fixed | 3.80% | 3.88% | |
15 yr fixed | 3.20% | 3.23% | |
5/1 ARM | 3.84% | 3.88% | |
30 yr refi | 3.82% | 3.93% | |
15 yr refi | 3.20% | 3.23% |
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