Treasurys give up most of their gains as demand for TIPS is tepid; Auctions loom this week

Bonds give up gains following modest TIPS auction

NEW YORK — Treasury prices are giving up most of their gains after an auction for inflation bonds was met with modest demand.

Bonds had started higher Monday after Greece’s borrowing costs soared again and Germany said it wanted to see more austerity measures from Athens.

Those gains mainly evaporated in the afternoon following tepid demand, especially from foreign investors, at an auction for five-year Treasury Inflation-Protected Securities, or TIPS.

The goverment will also auction 2-year, 5-year and 7-year notes this week.

The yield on the benchmark 10-year bond was 3.81 percent, down slightly from 3.82 percent late Friday.