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The bond market struggled yesterday, with yields increasing in the afternoon as investors sifted through the effects of the Fed’s new bond-buying program.

Last week, the Federal Reserve announced plans to buy up $600 billion of Treasuries by the second quarter of next year.

Now, the market is “trapped” between the expectation of government debt purchases and foreign investors selling similar assets.

Investors now seem to be playing a waiting game and taking cues from the equity markets.

Demand for bonds remained high for Tuesday afternoon’s bond auction, in which the government offered $24 billion in 10-year notes. The bid-to-cover ration for the auction was 2.80, suggesting that demand remains robust.

On Wednesday, Treasury will conclude its auctions for the week by offering $16 billion in 30-year notes.

Bond markets will be closed on Thursday for the Veterans Day holiday.

The yield on the benchmark 10-year Treasury note moved higher to 2.66 percent Tuesday, from its close of 2.55 percent on Monday. Bond prices and yields move in opposite directions.

Yields for the 30-year bond increased to 4.25 percent, the 2-year note was up to 0.45 percent, and the 5-year note ticked up to 1.25 percent.

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