Treasury auctions $26B in 2-year notes at a high yield of 0.842%

U.S. sovereign bond prices held lower Monday after data and a Treasury Department auction of two-year notes.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, climbed to 1.899 percent, while the yield on the 30-year Treasury bond also ticked higher to 2.721 percent. Two-year yields rose to 0.822 percent, earlier touching 0.8340 percent, their highest since March 29.

The 10-year yield also hit its highest level since March 28.

Symbol
Yield
 
Change
%Change
US 3-MO
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US 1-YR
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US 2-YR
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US 5-YR
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US 10-YR
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US 30-YR
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The Treasury auctioned $26 billion in two-year notes at a high yield of 0.842 percent. The bid-to-cover ratio, an indicator of demand, was 2.64, versus a recent average of 3.05.

Indirect bidders, which include major central banks, were awarded 47.1 percent compared with a recent average of 48 percent. Direct bidders, which include domestic money managers, bought 14.5 percent versus a recent average of 15 percent.

Investors were looking ahead to the Federal Reserve's Federal Open Market Committee, which will start its meeting Tuesday and deliver an interest rate decision on Wednesday.

Investors also eyed new home sales for March, which came in below estimates.