Treasusys in advance ahead of 10-year auction (MarketWatch) (09-03-2011)

NEW YORK – Treasurys had gains on Wednesday pushing yields down, ahead of the government’s auction of 10-year notes.

Yields on 10-year notes which move inversely to prices, fell 3 basis points to 3.53%. A basis point is 1/100th of a percent.

Two-year yields declined 2 basis points to 0.71% and yields on 30-year bonds slipped 2 basis points to 4.65%.

The Treasury Department will auction $21 billion in 10-year notes at 1 p.m. Eastern time.

The auction is a reopening, meaning the securities sold will carry the same coupon and maturity date as the original securities sold last month.

Investors have tried to balance worries about higher oil prices denting consumer spending and the U.S. recovery, against generally improving economic data that point toward a stronger job market.

The Federal Reserve will hold its last scheduled buyback of U.S. debt maturing from 2015 to 2016.

Source: MarketWatch