If the real yield does come in at a relatively high figure, these bonds are likely to be good investments.

The yield came in at 5.889 percent, in line with expectations.

"And anytime yields come down, people start reaching for paper that has lower ratings."

"And when the yield came in at 4.11 percent, the market retreated, with prices falling back to the lows of the day."

Yesterday's note auction did not hurt the market, as yields came within expectations.

"I expect yields to come back together as people get confident that tax laws are not about to change," he said.

But they suggested yields would come in a little better than expected.

Analysts said that as yields came down, the managers were taking longer positions.

The issue's high yield came in at 6.144 percent, which was slightly more than expected.

"Although we've seen yields come down, we do think inflation is well enough under control according to signs in that economy," she added.