MW:Treasurys gain; yields could fall to recent lows
By Deborah Levine
SAN FRANCISCO (MarketWatch) -- Treasury prices rose on Tuesday, pushing yields down, as equities fell and Moody's Investors Service downgraded some of Spain's regions, which weighed on the euro and Spanish bonds. Yields on 10-year notes 10_YEAR -2.20% , which move inversely to prices, fell 5 basis points to 1.77%. Perception that President Barack Obama won Monday night's debate against Mitt Romney may be partially credited for the market moves. "If Obama is re-elected, we've got a feisty House to contend with and a Fiscal Cliff and set of tax policies that create ongoing uncertainty in the midst of a disappointing earnings season," said bond strategists at CRT Capital Group. That could push yields to the low end of their recent range, around 1.63% for 10-year notes, they said. Later in the session, the Treasury Department will auction 2-year notes 2_YEAR -2.57% .
