NEW YORK -- Government bond prices are slightly higher even as negotiations to raise the country's borrowing limit remain at an impasse.
An auction of $35 billion in two-year notes went well considering the uncertainty over the debt talks. Investors placed bids for 3.14 times the amount of notes up for sale, slightly lower than the average over the past year.
Washington has until Aug. 2 to raise the country's borrowing limit or risk defaulting on its debt. The Treasury market has remained steady as the deadline nears. Some traders believe a debt crisis would send nervous investors rushing into bonds as other markets turn volatile.
The price of the 10-year Treasury note is up 34.3 cents for every $100 invested in afternoon trading. Its yield fell to 2.96 percent from 3 percent.