Treasuries were sharply lower Tuesday as stocks were boosted by news that forces fighting the Taliban in Afghanistan captured the capital city of Kabul and optimism built that terrorists didn't play a part in a plane crash in New York the previous day.
U.S. government debt tends to sell off following good news. Treasury notes and bonds often rise on bad news, the thinking being that investors will sell equities and flee to the safety of government-backed debt.
Around midday, the two-year note was losing 6/32 to 100 15/32, yielding 2.50%. The five-year was off 11/32 to 99 4/32, yielding 3.69%, and the 10-year Treasury was down 19/32 to 104 30/32 to yield 4.37%. The 30-year bond, which is being discontinued by the Treasury Department, was lower by 24/32 to 107, yielding 4.92%.
The bond market was closed Monday for the Veterans Day holiday.