By Deborah Levine
SAN FRANCISCO (MarketWatch) -- Treasury prices rose and the euro extended gains against the U.S. dollar on Tuesday, after European Central Bank President Mario Draghi cancelled a plan to speak at the Federal Reserve's Jackson Hole conference this weekend. That put more attention on Fed Chairman Ben Bernanke's anticipated comments on whether the U.S. central bank will buy more bonds to ease financial conditions. Also, the U.S. will sell $35 billion in 2-year notes 2_YEAR +1.45% later in the session, an auction that analysts expect to go smoothly. Yields on 10-year notes 10_YEAR -0.97% , which move inversely to prices fell 2 basis points to 1.64% -- the seventh day out of the last eight sessions when yields have fallen. The dollar index DXY -0.23% , which measures the U.S. unit against a basket of six major currencies, traded at 81.449, down from 81.696 in North American trade late Monday. The euro EURUSD +0.3793% rose to $1.2545, from $1.2500 on Monday.
