Treasurys slip even after Europe delays Greek aid

AP News
Posted: Jun 20, 2011 5:18 PM
Treasurys slip even after Europe delays Greek aid

Government bond prices were slightly lower Monday after European officials said they would work to prevent Greece's debt crisis from spreading.

European Union officials in Luxemburg said Monday that the EU would set aside more cash to help Ireland, Portugal and other European countries struggling with heavy debts.

E.U. finance ministers delayed a decision on providing a loan payment for Greece at a weekend meeting. In order to get that aid, Greece has to pass more budget cuts.

In early afternoon trading, the 10-year note dropped 12.5 cents for every $100 invested. The lower price nudged the yield up to 2.96 percent from 2.95 percent late Friday.

Greece's debt crisis and signs that the U.S. economic recovery is losing strength have drawn traders to Treasurys over recent weeks, pushing down yields. Long-term interest rates for U.S. government debt remain near their lows for the year.

The two-year Treasury yield inched down to 0.37 percent from 0.38 percent late Friday.

The price of the 30-year bond rose 12.5 cents. Its yield slipped to 4.20 percent from 4.21 percent.

The three-month Treasury bill paid a 0.01 percent yield. Its discount was 0.03 percent.