Bond prices fall on hopes of more aid to Greece

AP News
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Posted: Jun 17, 2011 5:24 PM
Bond prices fall on hopes of more aid to Greece

Government bond prices are falling on hopes that Greece will get more help to avoid defaulting on its debt.

German Chancellor Angela Merkel and France's President Nicolas Sarkozy ended a meeting Friday with a pledge to get a deal in place to give Greece more loans. Traders are hoping that will prevent Greece from defaulting on its loans and causing another financial crisis.

That helped stabilized bond markets a day after yields on U.S. government bonds reached their lowest levels in 2011 as worries about Greece deepened.

The price of the 10-year Treasury note fell 6.25 cents for every $100 invested Friday. The rise in price pushed the yield up to 2.94 percent from 2.92 percent late Thursday.