Treasury prices lower ahead of debt auction

NEW YORK — Government bond prices were lower ahead of $66 billion in new debt that Treasury plans to auction this week.

Treasury prices fell Monday after last week's big gains, when traders flocked to its safety on fears that the U.S. economy had started to sag. Last week, the yield on the 10-year Treasury fell for the first time below 3 percent.

On Monday, the price of the 10-year Treasury fell 18.7 cents for every $100 invested. That sent the yield higher to 3.01 percent from 2.99 percent late Friday. When bond prices rise, yields fall.

The government is holding three auctions this week for $66 billion in new debt. The first is a sale of $32 billion in three-year notes Tuesday. Prices usually come under pressure when there is new supply.