Treasury Prices Slide Ahead Of New Supply

NEW YORK (AP) - Shorter-dated Treasurys fell Monday as traders prepared for an auction of three-year notes totaling $32 billion on Tuesday.

The yield on the two-year note rose to 0.77 percent Monday from 0.76 percent Friday.

Longer-dated Treasurys were mixed. The yield on the 10-year note was 3.64 percent, down a touch from 3.65 percent late Friday. The 30-year bond rose 37 cents for every $100 invested. That sent its yield down to 4.70 percent, from 4.73 percent on Friday.

In total, the government plans to auction $72 billion in new bonds this week. Tuesday's three-year note auction will be followed by sales of $24 billion in 10-year notes Wednesday and $16 billion in 30-year bonds Thursday.

Traders have been selling Treasurys recently, raising their yields, in response to better economic reports. Investors generally seek the safety of Treasurys when the economy appears rocky. However, strong economic data in recent weeks has convinced traders that the economy is growing. Yields had been in a tight range since the year began after spiking on expectations of economic growth at the end of last year.

In the market for short-term Treasury bills, the three month T-bill paid a 0.14 percent yield. Its discount was 0.14 percent.