TREASURIES-Prices steady following 10Y note auction

Tue Nov 10, 2009 7:10pm GMT
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* 10-year Treasury note auction draws decent demand

* Weaker stocks underpin safety bid for bonds

* Fed officials see slow recovery (Updates prices, adds quote, changes byline)

By Ellis Mnyandu

NEW YORK, Nov 10 (Reuters) - U.S. Treasury debt prices were steady on Tuesday after a $25 billion auction of benchmark 10-year notes garnered decent demand, but results did little to offset caution ahead of the 30-year note sale.

The 10-year note auction came a day after a solid $40 billion three-year note auction, all part of this week's $81 billion Treasury refunding plan.

"It was a decent auction. Not nearly as strong as yesterday's three-year auction, but it came right at secondary market level," said Rick Klingman, managing director of Treasury trading at BNP Paribas in New York. "The indirect bids were still at a healthy level. Overall a very fair auction."

Benchmark 10-year notes US10YT=RR were trading 2/32 higher in price to yield 3.48 percent, down from 3.49 percent late on Monday, while 30-year bonds US30YT=RR were 3/32 lower to yield 4.40 percent.  Continued...

 
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