MW: Treasurys trade mixed with Greece, auctions in focus
By Deborah Levine, MarketWatch
NEW YORK (MarketWatch) -- Yields on 10-year notes fell modestly while 2-year yields moved higher early Monday, pulled by a combination of concern about Greece's finances, upcoming Treasury auctions and speculation about what the impact of U.S. health-care reform would be.
Strategists at RBS Securities cited "simmering fears about Greece."
A summit of European Union leaders this week will be closely watched for signs of whether any aid will be offered to the debt-burdened country. See more about Greece.
Bond yields move inversely to their prices.
Yields on 10-year notes (UST10Y 3.69, +0.01, +0.35%) declined 1 basis point to 3.69%. A basis point is 0.01%.
Yields on 2-year notes (UST2YR 0.99, +0.04, +3.88%) rose 2 basis points to 0.97%.
Starting on Tuesday and continuing ove three days this week, the government will sell $118 billion in 2-year, 5-year (UST5YR 2.45, +0.04, +1.62%) and 7-year notes (UST7YR 3.15, +0.03, +0.83%) .
The approach of auctions -- occurring every other week now for some time now -- tends to weigh on the broader markets as dealers sell off existing holdings of maturities being sold in order to get the newest, most liquid securities at a lower price.
Also up for debate is how much the health-care overhaul will affect the U.S. budget deficit and the nation's need for debt financing. See more on health care.
"The political implications for the Democrats of full passage are a continuation of uncertainty into the November elections," said strategists at CRT Capital Group. "Domestic political and policy uncertainty may prove a temporarily supportive force for Treasurys."
