Treasurys mixed after auction of 7-year notes

AP News
Posted: Feb 23, 2012 3:57 PM
Treasurys mixed after auction of 7-year notes

Treasury prices were little changed Thursday after the government raised $29 billion from investors.

The price of the 10-year Treasury note rose 9.37 cents for every $100. The yield on the benchmark note slipped to 1.99 percent from 2 percent late Wednesday.

The Treasury sold seven-year notes at a yield of 1.41 percent, the last of three auctions that raised a total of $99 billion this week. That's slightly lower than the four-month average of 1.49 percent. Buyers placed bids for 3.11 times the amount offered, the strongest show of demand for seven-year notes since November.

Bond buyers have been willing to lend to the U.S. government at ultra-low rates because they consider the Treasury market one of the world's safest places to park money. The yield on the seven-year note was trading above 2.45 percent eight months ago.

In other trading, the 30-year rose 28.1 cents. The higher price nudged the yield to 3.13 percent, up from 3.14 percent late Thursday. The yield on the two-year note was unchanged at 0.31 percent.

In the market for short-term Treasury bills, the three-month T-bill paid a yield of 0.09 percent.