Treasurys fell Monday, pushing yields to their highest in more than two months, before the government floods the market with its biggest quarterly refunding package on record.
Ten-year note yields rose 2 basis points, or 0.02%, to 3.01%. It earlier reached 3.05%, the first time above 3% since November.
Two-year note yields increased 2 basis points to 1.01%, the first time above 1% since early December.
Shorter-term securities fared better, with yields a little lower in early trading, amid disappointment in further delays from Washington in the details of a plan to support banks and continuing debate in Congress over the stimulus package.
"This week is all about the challenge of massive supply," said strategists at RBS Greenwich Capital. "The economic environment remains very bond friendly but issuance is problematic."
The Treasury Department sold $31 billion in three-month bills at a rate of 0.345%.
It also sold $30 billion in six-month bills at a rate of 0.488%.
The government's quarterly sales of three- and 10-year bonds and 30-year bonds are the main focus of the market.
On Tuesday, $23 billion in one-year notes and a record $32 billion in three- year notes will be on sale. Wednesday will bring $21 billion in 10-year notes, followed by $14 billion in long bonds the following day. Both long-term debt sales are for the most ever.
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