Yields on U.S. government bonds slipped Friday as traders turned their attention to Spain's debt troubles.
The yield on the 10-year Treasury note edged lower Friday as reports emerged that a Spanish bank, which has already received bailout money, needed even more help. Bankia, the country's largest property lender, asked for nearly $24 billion in support.
Like others in Europe, Spain's government has been struggling with its finances. But the Spanish government is also trying to shore up its troubled banks, which have suffered deep losses from loans made during the country's real estate boom.
The worry is that Spain could wind up needing a much larger rescue package than those given to Greece, Portugal or Ireland.
The yield on the 10-year Treasury note fell to 1.74 percent in Friday trading, down from 1.78 percent late Thursday. Its price rose 31.2 cents for every $100 invested. Bond yields fall as their prices rise.
Mounting fears over Europe's debt crisis have drawn investors into the Treasury market in May, pushing U.S. government bond rates to record lows. The 10-year Treasury note started May at 1.95 percent.
In other Friday trading, the yield on the 30-year bond fell to 2.84 percent from 2.87 percent the day before. Its price rose 62.5 cents. The yield on the two-year note fell to 0.29 percent from 0.30 percent.
The three-month T-bill paid a yield of 0.09 percent.
Trading stopped early Friday ahead of the long weekend. The bond market will be closed Monday for Memorial Day.
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