TREASURIES-Long-dated bonds tumble ahead of next supply load
* Yield curve steepens after two-day flattening
* $35 bln sale of 3-year notes sees solid demand
* Ten-, 30-yr Treasury auctions due Wednesday, Thursday (Recasts after auction)
By Burton Frierson
NEW YORK, June 9 (Reuters) - Longer dated U.S. Treasuries tumbled on Tuesday, keeping benchmark yields near recent seven-month highs as the market shrugged off a solid auction of three-year notes to focus on looming supply later in the week.
The Treasury's $35 billion sale of three-year notes drew robust demand and investors were heartened by a strong measure of foreign participation.
However, the auction was the first installment of a total of $65 billion worth of coupon securities set to come to market this week, with $19 billion in 10-year notes for sale on Wednesday and $11 billion in 30-year bonds on Thursday.
"You are seeing some people setting up for the next auction with this one out of the way," said John Canavan, market strategist with Stone & McCarthy Research Associates in Princeton, New Jersey.
"This is a good way to kick off this week's auctions," Canavan added about the three-year results. Continued...
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