Treasury prices were higher Monday, pressuring yields, as investors reacted positively to new details announced by the Treasury Department of its auctions of 2-year and 5-year notes later this week.

The benchmark 10-year Treasury note last was up 5/32 at 99-25/32 with a yield ($TNX :

46.52, -0.20, -0.4% ) of 4.652%.
The 30-year note was 8/32 higher at 98-23/32 with a 4.831% ($TYX :

48.30, -0.15, -0.3% ) yield.
The 2-year note was up 1/32 at 99-24/32 with a 4.635% ($TYX :

48.30, -0.15, -0.3% ) yield.
Prices opened higher and extended gains after the Treasury Department said it will sell $18 billion of 2-year notes and $13 billion of 5-year notes. Those amounts are unchanged from the most previous auctions of those maturities.
Prior to the announcement there had been concerns that the government might reduce the auction sizes from prior levels, in light of an improving outlook for the U.S. budget. Since December there has been a tendency to reduce auction sizes in light of lower projected borrowing needs.
Treasury prices overnight drew some support from higher prices for German bunds. U.S. and German bonds often trade in tandem.

Posted: 04|23|07 at 6:19 pm. Filed under: Auction News.