Treasury prices mixed after earthquake hits Japan

AP News
Posted: Apr 07, 2011 5:22 PM
Treasury prices mixed after earthquake hits Japan

Treasurys were mixed Thursday after a 7.4 magnitude earthquake struck off the coast of Japan.

Treasurys recovered earlier losses as news of the earthquake prompted some investors to move money into U.S. government debt, considered among the world's safest investments.

Short-term Treasurys rose, lowering their yields. The yield on the two-year note sank to 0.78 percent from 0.84 percent late Wednesday.

Treasurys had sold off earlier in the day in response to an interest rate hike by the European Central Bank. The ECB raised its key lending rate to 1.25 percent from 1 percent, where it had been since May 2009. The Treasury also announced plans to sell $66 billion in new government debt next week.

In other trading, the 10-year Treasury note dropped 3.12 cents for every $100 invested. Its yield ended the trading day unchanged at 3.55 percent. The 30-year bond dropped 28.1 cents, and its yield edged up to 4.62 percent from 4.60 percent.

Bond yields and prices move in opposite directions.

In the market for short-term Treasury bills, the three-year T-bill paid a 0.03 percent yield. Its discount was 0.04 percent.