TREASURIES-US shorter-dated bonds extend losses after auction
NEW YORK, Dec 23 (Reuters) - Shorter-dated U.S. Treasury debt prices extended losses on Tuesday after relatively soft demand in a record-large $28 billion five-year note auction.
The bid-to-cover ratio, a gauge of demand, in the auction was 2.06, below the average of 2.15 percent in the 11 previous five-year auctions of 2008.
"People are balking and demanding higher yields," said George Goncalves, chief Treasury/TIPS and agency strategist with Morgan Stanley in New York.
Five-year Treasury notes US5YT=RR were trading 5/32 lower in price for a yield of 1.45 percent from 1.42 percent late on Monday, while the benchmark 10-year note US10YT=RR was 6/32 higher in price for a yield of 2.16 from 2.18 percent. (Reporting by Chris Reese and John Parry; Editing by Chizu Nomiyama)
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