Treasurys drop on hopes Greece will get more help

AP News
Posted: Jun 02, 2011 5:15 PM
Treasurys drop on hopes Greece will get more help

Government bond prices fell Thursday on expectations Greece may get more help managing its debts from other European countries.

The 10-year Treasury note is down 75 cents for every $100 invested in late trading. The lower price pushed the yield up to 3.03 percent from 2.94 percent late Wednesday. When bond prices drop, their yields rise.

European officials are in talks over new measures to prevent Greece from defaulting. Concerns that Greece would default had sent investors into the relative safety of Treasurys over the past month.

A drop in private company hiring and a sharp decline in manufacturing helped send the yield on the 10-year note below 3 percent Wednesday for the first time since December.

In other trading, the price of the 30-year Treasury fell $1.90, while its yield rose to 4.25 percent from 4.14 percent late Wednesday. The yield on the two-year note dropped to 0.46 percent from 0.45 percent.

The yield on the three-month T-bill fell to 0.03 percent from 0.04 percent. Its discount was 0.04 percent.