U.S. government debt prices were steady to lower early on Wednesday after rising the previous session, as traders moved to lower prices ahead of an auction of new 10-year notes.

An auction of $16 billion of new three-year notes on Tuesday, the first leg in the Treasury’s $38 billion refunding, found decent demand and helped give bond prices a boost.

The Treasury will auction $13 billion of 10-year notes on Wednesday and $9 billion of 30-year notes on Thursday.

Ahead of Wednesday’s auction, bond prices fell slightly, with the benchmark 10-year note down 2/32 in price for a yield of 4.78 percent from 4.77 late on Tuesday.

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Posted: 02|8|07 at 8:10 am. Filed under: Auction News.