Bonds Rally

Treasuries moved higher on a strong five-year note auction

Treasuries rallied on a strong five-year note auction, strong dollar and overseas demand, according to S&P MarketScope. The auction of $15 billion 5-year notes were stopped at 3.55%, with 88.03% taken at the high. This bodes well for tomorrow's $9 billion 10-year auction. Bonds prices rose as the dollar strengthened, making U.S. treasuries more desirable to oversease investors. As bond prices rose, the yield on the benchmark 10-year treasury fell to 4.13%.

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