By Deborah Levine
SAN FRANCISCO (MarketWatch) -- Treasury prices fell on Tuesday, pushing yields up slightly, with the session's government auction of 3-year notes 3_YEAR +0.60% being looked to as an indication of the market's expectations for the Federal Reserve decision this week. Yields on benchmark 10-year notes 10_YEAR +0.96% , which move inversely to prices, rose 2 basis points to 1.68%. Yields on the current 3-year note added 1 basis point to 0.33%. The auction may "provide some clue as to how much of QE3 potential this Thursday has been discounted," said bond strategists at CRT Capital Group, using the market's shorthand for a third round of quantitative easing.
