NEW YORK (MarketWatch) - Treasurys remained higher on Tuesday, pushing yields down, after the government said the U.S. economy shrunk more than previously estimated in the third quarter. Ten-year note yields fell 12 basis points to 3.21%. The Commerce Department's revised reading for the three months ended in September showed gross domestic product declined 0.5%. A separate report is expected to show consumer confidence continued declining. The Federal Reserve's announced plans to buy mortgage-backed securities and support asset-backed debt holders to spur lending cut into gains overnight as Japanese investors seized on higher yields after a three-day weekend. The Treasury Department is set to auction a record $26 billion in five-year notes today, following Monday's sale of the most two-year notes ever.
