U.S. sees good demand at auction; bonds stay up

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U.S. sees good demand at auction; bonds stay up
from MarketWatch.com - MarketPulse
SAN FRANCISCO (MarketWatch) -- The Treasury Department sold $35 billion in 2-year notes on Tuesday at a yield of 0.27%. Bidders offered to buy 4.07 times the amount of debt sold, the highest so-called bid to cover ratio since last November and compared to an average of 3.89 times at the last four sales of 2-year notes, according to CRT Capital Group. Indirect bidders, a group which includes foreign central banks, bought 34.4%, the highest proportion since February and versus 28.5% of recent auctions, on average. Direct bidders, a group which includes domestic money managers, purchased another 23.6% versus an average of 20.4%. After the auction, the broader Treasury market held onto gains. Yields on 10_year notes , which move inversely to prices, fell 2 basis points to 1.65%.