Treasury Prices End on a Positive Note as Stocks Slip

Treasury prices ended the week on a positive note after losing value during the first three days and then staging a minor rally over the next two. Weakness in equities has brought back investors' focus to fixed-income securities. At the closing bell, the money market's strength was most evident at the longer end, with the 30-year Treasury gaining by more than half a point.

A $5 billion auction of three-year notes from Freddie Mac also helped the trading volume. There is more supply-side activity to come, with a $21 billion sale of three- and six-month Treasury bills.

The fall in price earlier in the week was primarily due to the $32 billion quarterly auction in notes and bonds, which came to a close yesterday. Such an event usually introduces excess amounts of debt into the market and consequently decreases its worth. Dealers are also inclined to go into a selling mode before the auction hour to lower the bid values of the issues. ...