MW: Treasurys up on safe-haven needs before auction
By Deborah Levine
NEW YORK (MarketWatch) -- Treasury prices rose modestly in early trading Tuesday, pushing yields down, as concerns about European sovereign debt grew and lingering worries about the effects of Libya's civil war and protests growing throughout the Middle East kept investors interested in the relative safety of U.S. debt. The main event for the day will be the Treasury Department's auction of 3-year notes (UST3YR 1.20, -.00, -0.25%) , which traders expect to go well. "The auction itself is likely to not be the primary driving force behind price action on Tuesday though, as the underlying bid to the market remains tied to exogenous political and military events," said George Goncalves, a bond strategist with Nomura Securities. Yields on 10-year notes (UST10Y 3.50, -0.02, -0.43%) , which move inversely to prices, fell 3 basis points to 3.49%.
