Treasury yields rise on hopes about vote in Greece

AP News
Posted: Jun 21, 2011 5:38 PM
Treasury yields rise on hopes about vote in Greece

Government bond prices fell Tuesday on hopes that a vote of confidence in the Greek government will prevent the country from defaulting on its loans.

The Greek Parliament is voting about whether to support a new Greek cabinet. If the vote passes, it would reassure investors that Greece will be able to pass unpopular budget cuts needed to satisfy international creditors. European officials have demanded those cuts before they release the latest installment of emergency loans.

Traders have been worried since May that Greece would default on its debts and cause another financial crisis. That has pushed the yields on bonds lower as investors move money into lower-risk assets like Treasurys. Last week, the yields on U.S. government bonds reached their lowest levels in 2011 as worries about Greece intensified.

The price of the 10-year Treasury note fell 25 cents for every $100 invested Tuesday. The rise in price pushed the yield up to 2.98 percent from 2.96 percent late Monday.

The 30-year bond fell 37.5 cents, sending its yield up to 4.22 percent from 4.20 percent. The yield on the two-year Treasury note was unchanged at 0.37 percent.

The three-month Treasury bill paid a yield of 0.01 percent, at a discount of 0.03 percent.