Treasury prices fall on debt limit impasse

AP News
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Posted: Jul 18, 2011 5:37 PM
Treasury prices fall on debt limit impasse

Government debt prices slid Monday on worries over Washington's inability to reach an agreement on raising the country's borrowing limit.

The price of the 10-year note fell 18.8 cents for every $100 invested. That sent the yield up to 2.93 percent from 2.90 late Friday.

The Treasury Department says the limit must be raised by Aug. 2 or the government risks defaulting on its debt. Rating agencies warned last week that the impasse puts the country's top-notch AAA credit rating grade at risk.

The price of the 30-year bond fell $1.13. Its yield rose to 4.31 percent from 4.25 percent. The yield on the 2-year note rose to 0.37 percent from 0.35 percent.

The yield on the three-month T-bill fell to zero percent from 0.01 percent. Its discount was 0.01 percent.