U.S. Treasury prices are diving after an auction of 10-year notes drew very weak demand, signaling a lack of appetite for ultra-safe investments.
The Treasury Department on Wednesday auctioned $21 billion of 10-year notes to yield 1.764 percent. CRT Capital Markets LLC says that similar notes at the time fetched a yield of 1.755 percent.
The higher bond yield reflects weaker demand. CRT says there were many fewer bids for the notes than at recent auctions of 10-year notes.
The price of the note dived after the auction. It declined 56 cents for every $100 invested, pushing the note's yield up to 1.76 percent as of 3:20 p.m. EDT from 1.70 percent late Tuesday.
The price of the 30-year Treasury bond fell $1.16 per $100 invested.
