Treasury prices edge down after auction

AP News
Posted: Jul 13, 2011 5:45 PM
Treasury prices edge down after auction

Treasury bond prices were little changed Wednesday, keeping interest rates near their lowest levels of the year.

Traders kept up their purchases of bonds after an auction of new 10-year notes was met with strong demand. Concerns about Europe's debt problems also prompted investors to keep buying lower-risk assets.

A rally on the stock market prompted some investors to sell bonds. Stocks rose after Federal Reserve Chairman Ben Bernanke said the central bank would be willing to consider additional stimulus measures for the economy if necessary.

The price of the 10-year note fell 3.1 cents per $100 invested in afternoon trading. The lower price raised the yield to 2.89 percent from 2.88 percent.

The yield on the 10-year note is used as a benchmark for many consumer interest rates, including mortgages and student loans. The yield on the note reached a high for the year of slightly more than 3.7 percent in February.

The Treasury sold $21 billion in 10-year notes at a yield of 2.91 percent.

The price of the 30-year Treasury dipped 6.2 cents per $100 invested. The yield edged to 4.17 percent from 4.18 percent.

The yield on the 2 year note was 0.35 percent. The yield on the 3-month bill was 0.01 percent. Its discount was not available.