Treasuries hold gains after 2-year note auction chart for more bond market data. By Hibah Yousuf, staff reporter

NEW YORK (CNNMoney) -- Treausury prices continued to firm Tuesday following the sale of $35 billion in 2-year Treasury notes but remained in a narrow range as investors digested mixed economic news.

The price on the benchmark 10-year note rose slightly, pushing the yield down to 3.38% from 3.41% late Monday. Bond prices and yields move in opposite directions. The yield on the 30-year bond fell to 4.53%, while the yield on the 2-year note edged down to to 0.63%. The 5-year note's yield slipped to 2.00%.

Treasuries got an early boost after the British government reported that the U.K. economy unexpectedly contracted during the fourth quarter of 2010 and an industry report showed that home prices continued to slump in November. The worse-than-expected data increased demand for government bonds, which are considered safe haven investments and are more attractive in a rocky economy.

Prices drifted into negative territory for a brief period after the Conference Board said that consumer confidence is at the highest level since May 2010 before rising again.

While the improving sentiment is promising, the question of whether or not the economy is materially improving is still open, said Richard Bryant, head of Treasury trading at MF Global.

"The real key will be a recovery in the labor market, and we have yet to see a report that has convinced the market that the economy is creating enough jobs to turn the corner," said Bryant, adding that Treasury prices are likely to remain range bound amid current conditions.

President Obama is scheduled to deliver his State of the Union address Tuesday night, during which he is expected to talk about the health of the U.S. economy -- especially the labor market.

The first of the week's debt sales totaling $99 billion this week got off to a solid start. The Treasury auctioned $35 billion in 2-year notes Tuesday. The bid-to-cover ratio, a measure of demand, came in at 3.47. The government is planning to sell $35 billion in 5-year notes Wednesday and $29 billion in 7-year notes Thursday.

Meanwhile, the Federal Reserve convened for its first meeting of the year on monetary policy. While investors aren't expecting a change in interest rates at the conclusion of the meeting Wednesday afternoon, they will be paying close attention to the central bank's statement and economic outlook.  To top of page

Just the hot list include
Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.80%3.88%
15 yr fixed3.20%3.23%
5/1 ARM3.84%3.88%
30 yr refi3.82%3.93%
15 yr refi3.20%3.23%
Rate data provided
View rates in your area
Find personalized 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%
Data as of 6:29am ET
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%
Data as of 2:44pm ET


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

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.