Bonds hold at lower levels after refunding news

04 May, 2011

The Treasury Department announced it will sell $32 billion in three-year notes; $24 billion in 10-year debt and $16 billion in 30-year bonds next week.

Some analysts had predicted the refunding size could be cut by up to $3 billion after the Treasury pared its borrowing estimate for the current quarter on Monday.

Benchmark 10-year Treasury notes traded down 2/32 in price, matching the level prior to the refunding details.

The 10-year yield remained at 3.26 percent, which was above 3.25 percent -- Tuesday's closing level and a key trading resistance level.

Copyright Reuters, 2010

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