* Benchmark 10-year yields up ahead of week’s 3 Treasury auctions
* Benchmark yields hit 15-day low before reversing course
By Dion Rabouin
NEW YORK, Feb 7 (Reuters) - U.S. Treasury yields hit their lowest in more than two weeks before turning higher in early North American trading on Tuesday as investors sold bonds ahead of auctions for 3-, 10- and 30-year Treasuries this week.
Growing political uncertainty in Europe helped increase bond buying overnight as Treasury prices rose in concert with European bonds. The latest twists in the French presidential election race and doubts over a rescue package for Greece also stoked concerns over the future stability of the euro zone.
The long end of the Treasury curve was seeing the most selling as investors positioned for the 10- and 30-year Treasury auctions later this week.
“Leading into today you had pretty decent rally yesterday and we’re pretty significantly lower in yield than we were on Friday too, so I think it’s just a little concession coming into the supply,” said Thomas Simons, money market economist at Jefferies & Co.
Uncertainty over U.S. President Donald Trump’s campaign-trail promises of pro-growth policies sent yields lower on Monday. Now in the third week of his presidency Trump’s plans to cut corporate taxes and boost infrastructure spending have yet to be fleshed out, and analysts said the risk was increasing that the plans would fade further into the background.
While the 3-year auction was slated for Tuesday, ahead of the 10- and 30-year auctions, there is greater risk for a weak auction in longer-dated maturities, Simons said.
“The 3-year area of the curve, that type of supply is easier to take from a duration perspective. The long end needs a little more concession coming into new auctions because it is a lot of duration hitting the market at once,” he added. “Three years are more of a routine affair, whereas pricing on 10s and 30s can get more interesting.”
Benchmark 10-year Treasury notes were down 4/32 in price to yield 2.43 percent.
The U.S. Treasury plans to auction $24 billion of 3-year notes at 1 p.m. (1800 GMT)
Reporting by Dion Rabouin; Editing by Andrea Ricci