Treasury prices mostly fell for the second straight day on Thursday as investors again favored stocks and as the Treasury Department announced its latest round of auctions. In late trading, the benchmark 10-year Treasury fell 8/32 to 101 21/32, pushing its yield up to 3.42 percent from 3.39 percent late Wednesday. A disappointing report on weekly jobless claims was cast aside in afternoon trading as investors bought up stocks of companies that reported better-than-expected quarterly results. Dow Jones industrial average components 3M Co., Travelers Cos., AT&T Inc. and McDonald's Corp. all posted upbeat results, helping that index rise more than the Standard & Poor's 500 index or tech-heavy Nasdaq composite index. The government also announced its latest round of debt auctions. The Treasury Department said it will auction $121 billion in new debt next week as it continues to increase spending to stimulate the economy. There have been worries that the Treasury Department could saturate the debt market with the large amount of debt it's selling which could lead to lower prices for Treasurys and higher yields. Most recent auctions have been met with solid demand, however. A total of $7 billion in four-year, six-month Treasury inflation protected securities, or TIPS, will be auctioned Monday. The government will auction $44 billion in two-year notes on Tuesday. Another $41 billion in five-year notes will be sold on Wednesday and $31 billion in seven-year notes will be auctioned on Thursday. In other trading, the 30-year bond fell 18/32 to 104 10/32. Its yield rose to 4.24 percent from 4.21 percent. The two-year note rose less than 1/32 to 100 3/32, while its yield was unchanged at 0.95 percent. The yield on the three-month T-bill fell to 0.04 percent from 0.06 percent. Its discount rate stood at 0.05 percent. The cost of borrowing between banks was unchanged. The British Bankers' Association said the rate on three-month loans in dollars _ the London Interbank Offered Rate, or Libor _ held steady at 0.28 percent. |