Treasuries stick to tight range

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NEW YORK (CNNMoney) -- Treasuries traded in a tight range Tuesday as investors mulled over $99 billion in new supply from the government this week.

The price on the benchmark 10-year was little changed, with its yield at 3.13% -- the same as Monday's close.

The government kicked off its auction week with a sale of $35 billion in 2-year notes, which drew solid demand. Investors submitted $121 billion in bids at a median yield of 0.54%. Shortly after the results came in on Tuesday afternoon, the price on the 2-year Treasury rose, and its yield fell to 0.52%.

An auction of $35 billion of 5-year notes follows on Wednesday and $29 billion of 7-years on Thursday.

Earlier in the morning, a stronger than expected reading on new home sales barely moved the bond market.

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"New home sales are just noise," said Jim Vogel, head of agency debt research at FTN Financial. "They're so low, they could go up 10% in one month and it wouldn't necessarily mean all that much. No one anticipates any market pressure from housing for quite a while."

Over the long term, investors are basing their Treasury purchases based on the economic recovery, which has been shaky, Vogel said. He suspects a lot of investors are remaining on the sidelines, waiting for yields to go higher before they wade back into the bond market during the currently climate.

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U.S. Treasuries are typically considered a safe bet during times of uncertainty. But even with Europe's debt woes and Congress' clash on the deficit at the forefront, a lot of people are still unwilling to buy Treasuries at these yields, Vogel said.

"We've backed away from the zeal for Treasuries," he said.

The 10-year yield has been on a downward slope since February, and is hovering back at levels seen in May last year.

Meanwhile, traders are also waiting for the Federal Reserve's $600 billion stimulus program -- which has also helped keep yields low -- to end in June.