U.S. Treasurys prices fell on Tuesday as investors made room for this week's government debt supply in the aftermath of a surprisingly strong reading on job growth in October.
The Treasury auctioned $30 billion in three-year notes at a high yield of 0.644 percent. The bid-to-cover ratio, an indicator of demand, was 3.46. This auction will be followed by a $24 billion sale of 10-year debt on Wednesday and a $16 billion auction of 30-year bonds on Thursday.
Benchmark 10-year Treasury notes slipped 7/32 in price to yield 2.775 percent. Bond yields rose to their highest since mid-September but they were still lower than a month ago.
It is unclear whether these higher yield levels will bolster bidding at this week's November refunding, where the Treasury Department is selling $70 billion in debt.