Treasury prices edged ahead today after the US government said it will sell $57 billion in debt at its quarterly refunding next week, somewhat less than the market expected.
The market had been looking for around $60 billion with estimates ranged from $58 billion to $65 billion, so the actual result was a surprise.
The Treasury said it would auction $24 billion of three-year paper, $16 billion of five-year notes and $17 billion in 10-year notes. There was no mention of issuing different maturities, thus scotching speculation Treasury might bring back the one- or seven-year note to help meet the government's ballooning borrowing needs.
Benchmark 10-year notes recouped early losses to rise 2/32 in price, nudging yields to 4.29 per cent from 4.30 per cent yesterday.
Five-year notes added 1/32, taking yields to 3.25 per cent from 3.26 per cent, while the three-year held steady at 2.28 per cent.