Treasury Yields at Almost Four-Month Lows Before Auctions

Treasury 10-year note yields traded at almost the lowest level this year as the U.S. prepared to sell $35 billion in two-year debt tomorrow, the first of three note auctions this week totaling $99 billion.

Treasury volatility as measured by Bank of America Merrill Lynch’s MOVE index fell to a record 50.58 basis points, below the previous record of 51 basis points reached in December. Benchmark yields remained under the 200-day moving average for a seventh day as sales of previously owned U.S. homes unexpectedly dropped in March, showing uneven progress in the industry. Yields climbed earlier after the re-election of Italy’s president boosted speculation he will help resolve political gridlock.