Treasury 10-Year Yields Near 8-Month Highs Before Auction

Treasury 10-year note yields traded close to the highest level since April before the first auction of the securities this year after the Federal Reserve announced plans to buy more debt each month to sustain the U.S. economic recovery.

The yield on the benchmark note was little changed as the $21 billion of the securities the government is selling drew a pre-auction yield of 1.88 percent, which would be the highest since April. It is the second of three debt sales this week totaling $66 billion. Treasuries fell on Dec. 12, the date of the previous 10-year auction, as the central bank announced it would purchase $85 billion of government and mortgage debt a month.