Treasury prices up after $35 bln 2-year auction

AP News
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Posted: Apr 26, 2011 5:24 PM
Treasury prices up after $35 bln 2-year auction

Treasury prices rose Tuesday after the government sold $35 billion worth of two-year notes. The market was awaiting word from the two-day meeting of the Federal Reserve's policy-making committee, which got under way Tuesday.

The price of the 10-year Treasury note rose 43.7 cents per $100 invested. Its yield, which moves in the opposite direction, slipped to 3.31 percent from 3.37 late Monday.

The Treasury Department sold $35 billion in two-year notes with a yield of 0.67 percent. Foreign buyers, which include overseas central banks, made up 37.9 percent of buyers, higher than the average of 28.5 percent of the previous four auctions.

After the Fed's two-day meeting, economists expect the central bank to leave short-term interest rates unchanged. The Fed is also expected to end its $600 billion bond-buying program in June as scheduled.

In other trading, the price of the 30-year bond rose $1.09 cents. Its yield slipped to 4.39 percent from 4.46 percent.

The yield on the two-year note dropped to 0.61 percent from 0.64 percent. The three-month T-bill paid a 0.05 percent yield. Its discount was 0.05 percent.