NEW YORK (CNNMoney.com) -- Treasury prices rose Tuesday, pushing the 10-year yield down from the 4% highpoint it reached for the first time in 18 months. The government is auctioning off $82 billion in U.S. debt this week and so far, investors have responded with solid demand.
What prices are doing: The benchmark 10-year note rose 3/32 to 97-3/32, and its yield dipped to 3.96%, from 4% the day before. Investors have been looking forward to the yield reaching the 4% mark ever since it dropped from that level in October 2008, the height of the financial crisis.
 |
| Click the chart for the latest prices and yields. |
Bond prices and yields have a converse relationship; when prices rise, yields fall.
In morning trading Tuesday, the 30-year bond rose 1/32 to 96-7/32, and its yield fell to 4.84%. The 2-year note rose was flat at 99-8/32 and yielded 1.14%. The 5-year note rose 23/32 to 99 and yielded 2.71%.
What's moving the market: Tuesday marked the first normal trading day after a long holiday weekend. Bonds traded in a shortened session Friday for the Good Friday holiday, and markets in Europe and Hong Kong were closed for Easter Monday.
Light trading volume from the holidays and a slew of upbeat economic reports on both Friday and Monday made it easier for bullish bond investors to push the 10-year yield up to the 4% mark. Broader trading participation on Tuesday and renewed concerns about Greece's financial aid package brought the 10-year's yield back down.
In its second auction of the week, the Treasury Department issued $40 billion in 3-year notes Tuesday. Investors submitted bids totaling nearly $124 billion. The bid-to-cover ratio was 3.1, meaning the auction showed solid demand. A sale of $8 billion in 10-year Treasury Inflation-Protected Securities, or TIPS, on Monday was also well-received.
The auctions this week also include $21 billion in reopened 10-year notes on Wednesday and $13 billion in existing 30-year bonds Thursday. Treasury prices typically fall the day before major auctions, in anticipation of the new supply issue.
What analysts are saying: As yields rose on upbeat economic news in the last few trading days, the better rates have lured in more investors.
As a result, Tuesday was a high volume day for Treasurys, said Ron Mark, a fixed-income trader with BMO Capital Markets. But analysts are still looking ahead to the 10-year and 30-year auctions before they'll be prepared to define any movement in the markets as a significant trend, he said.
If investors continue to believe an economic recovery is underway, then analysts expect Treasury prices will continue to decline. 
| 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% |
Today's featured rates:
| Index | Last | Change | % Change |
|---|---|---|---|
| Dow | 32,627.97 | -234.33 | -0.71% |
| Nasdaq | 13,215.24 | 99.07 | 0.76% |
| S&P 500 | 3,913.10 | -2.36 | -0.06% |
| Treasuries | 1.73 | 0.00 | 0.12% |
| Company | Price | Change | % Change |
|---|---|---|---|
| Ford Motor Co | 8.29 | 0.05 | 0.61% |
| Advanced Micro Devic... | 54.59 | 0.70 | 1.30% |
| Cisco Systems Inc | 47.49 | -2.44 | -4.89% |
| General Electric Co | 13.00 | -0.16 | -1.22% |
| Kraft Heinz Co | 27.84 | -2.20 | -7.32% |
|
Bankrupt toy retailer tells bankruptcy court it is looking at possibly reviving the Toys 'R' Us and Babies 'R' Us brands. More |
Land O'Lakes CEO Beth Ford charts her career path, from her first job to becoming the first openly gay CEO at a Fortune 500 company in an interview with CNN's Boss Files. More |
Honda and General Motors are creating a new generation of fully autonomous vehicles. More |
In 1998, Ntsiki Biyela won a scholarship to study wine making. Now she's about to launch her own brand. More |
Whether you hedge inflation or look for a return that outpaces inflation, here's how to prepare. More |
