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Treasury Dept auctions $20 billion of 10-year notes at a high yield of 2.195%

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U.S. government debt prices traded mixed on Monday as investors looked ahead to the Federal Reserve's scheduled interest rate decision on Wednesday.

The yield on the benchmark 10-year Treasury notes, which moves inversely to price, was flat at 2.2066 percent, while the yield on the 30-year Treasury bond was slightly higher at 2.866 percent.

The U.S. central bank is widely anticipated to raise interest rates Wednesday. Market expectations for a June rate hike were at 95.8 percent Monday, according to the CME Group's FedWatch tool.

Fed officials should also give a nod to the fact that inflation is weaker but that they remain confident about the economy. Fed Chair Janet Yellen is also expected to talk more about how the Fed could move ahead to pare back its massive $4.5 trillion balance sheet later this year.

Monday also saw a $24 billion three-year note sale at a high yield of 1.5 percent. The bid-to-cover ratio, an indicator of demand, was 3.

Indirect bidders were awarded 65.6 percent, while direct bidders bought 6.2 percent.

The department also auctioned $20 billion in 10-year notes at a high yield of 2.195 percent on Monday. The bid-to-cover ratio, an indicator of demand, was 2.54.

Indirect bidders, which include major central banks, were awarded 44.7 percent. Direct bidders, which include domestic money managers, bought 8.8 percent.

Correction: The U.S. Treasury Department auctioned $20 billion in 10-year notes. A previous version of this story misstated the figure.