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Treasurys fall as stocks register big gains

Treasurys fall as stocks register big gains

Treasury prices fell Tuesday as stocks rallied and as the government began the week's auction of $63 billion in notes.
Demand for Treasury notes fell as stocks surged. The Dow Jones industrial average jumped nearly 380 points, or 5.8 percent, in what was its biggest rally since November. Investors snapped up stocks after Citigroup Inc. Chief Executive Vikram Pandit said in a letter to employees that the bank had operated at a profit for the first two months of this year.
Stock market investors also welcomed word that the government is considering reinstating a ban on some types of stock trades that critics say let investors unfairly pile onto weak stocks.
The gains in stocks cut into demand for the safety of government debt. Treasury prices also fell as the Treasury Department began selling more debt. It auctioned about $34 billion in three-year notes on Tuesday.
In late trading, the benchmark 10-year Treasury note fell 1 7/32 to 97 26/32. Its yield jumped to 3.01 percent from 2.88 percent late Monday. Prices move opposite yields.
The two-year note fell 4/32 to 99 22/32, and its yield rose to 1.04 percent from 0.97 percent, according to BGCantor Market Data.
The 30-year bond fell 2 28/32 to 95 31/32, and its yield rose to 3.72 percent from 3.59 percent.
The yield on the safe-haven three-month Treasury bill was flat at 0.23 percent. The discount rate was 0.24 percent.
The cost of lending between banks rose Tuesday. The British Bankers' Association said the London Interbank Offered Rate, or Libor, on three-month loans in dollars rose 0.02 percentage points to 1.33 percent. As recently as mid-January, the Libor rate stood at 1.08 percent.


Updated : 2021-06-15 02:10 GMT+08:00