Treasury prices rose Wednesday even after slightly tepid demand at an auction of 10-year notes.
The price of the 10-year note rose 31.2 cents per $100 invested in late trading. Its yield, which moves in the opposite direction, fell to 3.46 percent from 3.50 percent late Tuesday.
The Treasury Department paid a yield of 3.49 percent compared with 3.50 percent for the previous 10-year note auction last month. Investors placed bids for 3.13 times the amount offered, the lowest ratio this year for 10-year note sales.
The $21 billion auction was the second of three this week. On Tuesday, Treasury sold $32 billion in three-year notes. It plans to auction $13 billion in 30-year bonds on Thursday.
Investors also are looking toward the producer price index set to be released Thursday and the consumer price index due out Friday. Both will provide a snapshot of inflation conditions.
In other trading, the price of the 30-year bond rose 46.8 cents per $100 invested, while its yield fell to 4.54 percent from 4.59 percent late Tuesday. The yield on the two-year note slipped to 0.73 percent from 0.75 percent.
In the market for short-term Treasury bills, the three-month T-bill paid a 0.05 percent yield. Its discount was also 0.05 percent.