Treasury prices mostly rise as auction brings strong demand for new 10-year notes

Treasurys mostly rise amid strong auction demand

NEW YORK — Treasury prices mostly edged higher Wednesday after a strong showing for the government’s latest auction of 10-year notes.

In late trading, the 10-year note rose 2/32 to 101 7/32, while its yield remained unchanged at 3.48 percent. Treasurys had been falling through much of the day before rallying after the auction was completed.

The government auctioned off $20 billion in 10-year notes. The bid-to-cover ratio, a measure of demand, was 2.77 percent, much stronger than the 2.49 percent seen for similar notes auctioned in August.

The government has one more auction planned for the week, a sale of $12 billion in 30-year bonds on Thursday.

The exception to the advance was the 30-year bond, which slipped 2/32 to 102 26/32. Its yield was unchanged at 4.33 percent.

Treasurys had been slipping throughout most of the day amid a rally in the stock market. As stocks move higher, investors typically sell safer investments such as government bonds. The Dow Jones industrial average ended with a gain of 50 points.

In other trading, the price of the two-year note rose 1/32 to 100 4/32. Its yield was unchanged at 0.93 percent.

The yield on the three-month T-bill was flat at 0.13 percent. Its discount rate was 0.14 percent.

The cost of borrowing between banks dipped. The British Bankers’ Association said the rate on three-month loans in dollars — the London Interbank Offered Rate, or Libor — was unchanged at 0.30 percent.