NEW YORK (CNNMoney.com) -- Treasury bonds inched up Thursday, after investors showed a healthy appetite for U.S. bonds in the government's last of several auctions totaling $129 billion this week.
What prices are doing: The benchmark 10-year note rose 8/32 to 99-3/32, driving the yield down to 3.74%. Bond prices and yields move in opposite directions.
The 30-year bond rose 14/32 to 100-13/32 with a 4.6% yield. The 2-year note inched up to 100 with a 1.01% yield. The 5-year note rose 1/32 to 100-1/32 with a yield of 2.5%.
What's moving the market: After a flat morning, bond prices rose when the Treasury Department announced the results of its latest auction Thursday. The government's $32 billion issue of 7-year notes drew healthy demand, with investors submitting bids totaling $90.3 billion. Earlier auctions in the week also brought in decent demand.
Earlier Thursday morning, bond investors were pulled in various directions the auctions, gains in the stock market and concerns about sovereign debt in Europe.
The credit downgrading of Spain, Greece and Portugal earlier in the week are a boon for U.S. Treasurys, but at the same time, gains in the stock market can show investors are willing to put their money behind higher risk investments like equities.
What analysts are saying: "Forget the domestic equity rally, apparently. It's just time to buy U.S. dollar assets (of any variety)," Jim Vogel, head of debt research at FTN Financial said in an e-mail to investors.
|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||3.80%||3.88%|
|15 yr fixed||3.20%||3.23%|
|30 yr refi||3.82%||3.93%|
|15 yr refi||3.20%||3.23%|
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