Renewed fears about Europe’s banks lift Treasurys

Investors bid up Treasurys; 3-year notes near lows

NEW YORK — Treasurys are edging higher as investors seek safety amid renewed worries over Europe’s banking system.

Prices for U.S. government debt continued climbing Tuesday after the Treasury Department completed the first of three government debt auctions this week, expected to raise a total of $67 billion.

The government sold $33 billion in three-year notes at a yield of 0.79 percent, the lowest yield for the note in the past five years.

The auction drew bids worth 3.2 times the amount on offer.

The yield on the benchmark 10-year note, which moves in the opposite direction from its price, sank to 2.60 percent, a drop from 2.71 percent late Friday.