Treasury prices fell slightly after strong auction

AP News
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Posted: Apr 14, 2011 5:47 PM
Treasury prices fell slightly after strong auction

Treasury prices fell Thursday despite strong demand at an auction of 30-year bonds.

The price of the 10-year note fell 34.4 cents per $100 invested in Thursday trading. Its yield, which moves in the opposite direction, rose to 3.51 percent from 3.46 percent late Wednesday.

The Treasury Department sold $13 billion worth of 30-year bonds, attracting slightly above average demand. Treasury paid a yield of 4.53 percent, compared to 4.57 percent at last month's auction. Investors placed bids for 2.83 times the amount offered, higher than the average ratio of 2.70 for the last 10 auctions of 30-year bonds.

The auction was the last of three this week. On Wednesday and Tuesday, Treasury sold $53 billion in 10-year and three-year notes.

On Friday the government will release figures on consumer prices for March, providing the latest snapshot on inflation.

The price of the 30-year bond fell 9.4 cents per $100 invested, while its yield rose to 4.55 from 4.54 percent late Wednesday. The yield on the two-year note rose to 0.77 percent from 0.73 percent.

In the market for short-term Treasury bills, the three-month T-bill paid a 0.06 percent yield. Its discount was also 0.06 percent.