By Deborah Levine
NEW YORK (MarketWatch) -- Treasury prices held onto gains and the dollar remained up by about 1% on Wednesday after the U.S. said its trade deficit widened to $49.9 billion in June, more than many analysts had anticipated. Yields on 2-year notes (UST2YR 0.51, -0.01, -2.29%) , which move inversely to prices, fell 4 basis points to 0.50%, after touching a fresh all-time low in earlier trading. The dollar index (DXY 81.67, +0.87, +1.08%) , a measure of the U.S. unit against a basket of major rivals, rose to 81.542 from 80.834 in North American trade late Tuesday. The euro (EURUSD 1.3010, -0.0166, -1.2599%) fell to $1.3028, down from $1.3190. Still to come is the Treasury Department's sale of $24 billion in 10-year notes (UST10Y 2.73, -0.04, -1.30%) .
