Treasurys sell 2-year notes; bonds hold gains

NEW YORK (MarketWatch) — The Treasury Department sold $35 billion in 2-year notes /quotes/comstock/31*!ust2yr UST2YR +8.24% on Tuesday at a yield of 0.673%, the lowest since January. Bidders offered 3.06 times the amount of debt sold, down compared to the average of 3.34 times at the last four monthly sales of the securities, all for the same amount. Indirect bidders, a group of investors that includes foreign central banks, purchased 37.9%, better than the average of 28.5%. Direct bidders — which includes domestic money managers — bought another 13.4%, compared to 14.8% on average. Treasury prices held onto gains after the auction. Yields on 10-year notes /quotes/comstock/31*!ust10y UST10Y +0.45% , which move inversely to prices, fell 3 basis points to 3.34%.

/quotes/comstock/31*!ust2yr Add UST2YR to portfolio UST2YR U.S. Treasury 2 Year 0.66 +0.05 +8.24% Volume: 0.00 April 27, 2011 12:13a /quotes/comstock/31*!ust10y Add UST10Y to portfolio UST10Y U.S. Treasury 10 Year 3.32 +0.02 +0.45% Volume: 0.00 April 27, 2011 12:31a

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