BS: Treasurys lower before auction of 10-year notes
By Deborah Levine, MarketWatch
NEW YORK (MarketWatch) -- Treasury prices slid on Wednesday, pushing yields up to the highest level in two weeks, on concern that the government's sale of 10-year notes during the session won't be as well-received as Tuesday's 3-year auction.
Yields on the current 10-year notes (UST10Y 3.70, -0.02, -0.46%) increased 2 basis points to 3.72%. It touched the highest level on a closing basis since Feb. 22. Bond yields move inversely to prices and a basis point is 0.01%.
Yields on 2-year notes (UST2YR 0.87, -0.02, -2.69%) were little changed at 0.88%.
"The 10-year won't have the same ease that the 3-year did yesterday, but this isn't likely to be a tough auction either," said strategists at RBS Securities.
The Treasury Department will accept bids for the auction until 1 p.m. Eastern.
It's the second of three notable debt sales this week, following a good reception to Tuesday's sale of 3-year debt (UST3YR 1.37, -0.04, -2.49%) . See more in Tuesday's bond column.
The government will end the week's sales with 30-year bonds (UST30Y 4.68, -0.01, -0.19%) on Thursday.
The 10-year and 30-year sales are reopenings, meaning the debt sold will carry the same coupon and maturity date as the original securities issued quarterly -- in this case, last month.
The amounts of 10-year notes and 30-year bonds match what was sold at the last reopenings, in January.