Treasurys rise leading yields lower (MarketWatch) (08-03-2011)

NEW YORK -- Treasury prices rose modestly in early trading on Tuesday, leading yields to a lower level, as concerns about European sovereign debt grew and lingering worries about the effects of Libya's civil war and protests growing throughout the Middle East kept investors interested in the relative safety of U.S. debt.

The main event for the day will be the Treasury Department's auction of 3-year notes which traders expect to go well with the auction itself likely not to be the primary driving force behind price action on Tuesday as the underlying bid to the market remains tied to exogenous political and military events.

Yields on 10-year notes which move inversely to prices, fell 3 basis points to 3.49%.

Source: MarketWatch