S&P

Government bond prices rise despite S&P warning

AP News
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Posted: Apr 18, 2011 5:09 PM
Government bond prices rise despite S&P warning

Government bond prices edged higher Monday even after Standard & Poor's warned that it could downgrade U.S. debt in the next two years.

Treasury prices initially fell on the news but later recovered. The 10-year note is up 25 cents for every $100 invested in late trading Monday. The yield slipped to 3.38 percent from 3.41 percent late Friday.

S&P raised doubts over the ability of Congress and the Obama administration to reach an agreement to pare the country's rising debts. The agency said there was a 33 percent chance it could downgrade U.S. debt from its top AAA rating if no agreement is reached before 2013.

The price of the 30-year bond is up 37.5 cents. Its yield fell to 4.45 percent from 4.47 percent.

The yield on the two-year Treasury note fell to 0.66 percent from 0.70 percent.

The yield on the three-month T-bill edged down to 0.05 percent from 0.06 percent. Its discount was 0.06 percent.