Treasury prices mixed on Libya cease-fire

AP News
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Posted: Mar 18, 2011 5:20 PM

Treasury prices were mixed Friday as investors weigh news of a cease-fire in Libya and a coordinated move by central banks to weaken the yen.

The price of the 10-year Treasury note fell 12 cents per $100 invested on Friday. Its yield, which moves in the opposite direction, rose to 3.27 percent from 3.26 percent late Thursday. Prices on longer-term bonds were down.

Libya's foreign minister declared a cease-fire, which helped bring oil prices down in Friday trading. Traders worried rising oil prices would stifle consumer spending. The yen intervention by the world's seven largest industrialized countries eased concerns that Japan's nuclear crisis could hurt global economic growth.

Investors often buy safer assets like Treasurys during times of uncertainty.

"I'm surprised Treasurys didn't pick up more ahead of the weekend," said Josh Stiles, an analyst at IDEAGlobal.com. "The market has been on edge all week."

The price on the 30-year bond rose 35 cents per $100 invested, while its yield slipped to 4.42 percent from 4.44 percent. The yield on the two-year note edged up to 0.60 percent from 0.59 percent.

The yield on the three-month T-bill fell to 0.06 percent from 0.07 percent. Its discount was 0.07 percent.