Treasurys Seesaw After 10-year Notes Sale

SARA LEPRO

NEW YORK (AP) — Treasury prices seesawed Tuesday, ending the day roughly flat after a solid auction of 10-year notes.

Treasurys had been higher going in to the $25 billion auction — a record issuance of 10-year notes — buoyed by enthusiasm over a successful sale of three-year notes the day before. But the market sold off immediately following the sale as investors locked in profits.

"In the case of this 10-year, we've exhausted the buyers," said David Ader, head of government bond strategy at CRT Capital Group. "The buyers were sated and that was enough."

Longer-dated Treasurys suffered the biggest losses as a $16 billion auction of 30-year bonds looms. The government will issue the 30-year notes on Thursday. Bond markets will be closed Wednesday in observance of the Veteran's Day holiday. It's not unusual for investors to sell off Treasurys heading in to an auction in an effort to force down the price.

By late trading, all but the 30-year bond had recovered their losses but were still off their highs from earlier in the day.