Interest rates mixed investors despite strength in gov’t auction of $40M in three-year notes

Rates trade in narrow range after auction

CHARLOTTE, N.C. — Interest rates are moving in a narrow range in the bond market after the Treasury had another well-received auction of new bonds.

The government reported higher demand for its sale of $40 billion in three-year notes Tuesday. That soothed investors’ ongoing uneasiness about the continuing flow of new bonds into the market.

However, a modestly higher stock market drained some cash out of Treasurys. The Dow Jones industrial average is up 13 points in late trading.

The yield on the 10-year Treasury note that matures in February 2020 is down to 3.71 percent from 3.72 percent late Monday. Its price is up 2/32 to 99 9/32. The 10-year yield is a benchmark for many consumer loans.