Treasurys flat as fears ease over Japan's crisis

AP News
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Posted: Mar 22, 2011 5:15 PM
Treasurys flat as fears ease over Japan's crisis

Treasurys were mixed in light trading Tuesday as worries eased over Japan's nuclear crisis.

The price of the 10-year Treasury note dropped 6.25 cents for every $100 invested. The yield remained unchanged from late Monday at 3.33 percent. The yield on the 2-year note rose to 0.65 percent from 0.63 percent. Bond yields rise when prices fall.

Fears over Japan's nuclear crisis had sent investors into the refuge of Treasurys last week, dropping Treasury yields to lows for the year.

Efforts to cool a leaking nuclear plant in Japan appeared to make progress on Tuesday. Workers hooked up power lines to all six of the crippled complex's reactor units. With the power lines connected, officials hope to restart the plant's cooling system that was knocked out during the March 11 earthquake and tsunami.

In other Treasury trading, the 30-year bond rose 28 cents. The higher price lowered the yield to 4.44 percent from 4.45 percent the day before.

In the market for short-term Treasury bills, the three-month T-bill paid a 0.08 percent yield. Its discount was 0.09 percent.