Treasury prices drop after 30-year bond auction

AP News
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Posted: Jul 14, 2011 5:09 PM
Treasury prices drop after 30-year bond auction

Government debt prices fell Thursday after the government sold $13 billion in bonds to investors.

Treasury auctioned the 30-year bonds to investors at a yield of 4.19 percent. A warning from Moody's late Wednesday that it was reviewing the U.S. government's credit rating didn't keep buyers away. Investors placed bids for 2.80 times the $13 billion up for sale. Traders characterized demand for the bonds as strong.

The price of the 10-year note dropped 59.3 cents for every $100 invested in late afternoon trading Thursday. The lower price raised the yield to 2.95 percent from 2.89 percent.

The price of the 30-year Treasury dropped $1.31, while the yield rose to 4.25 percent from 4.17 percent. The yield on the 2-year note rose to 0.36 percent from 0.35 percent.

The yield on the 3-month Treasury bill was 0.01 percent. The discount was 0.01 percent.