Treasurys fall as Europe approaches new debt plan

AP News
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Posted: Jul 20, 2011 5:17 PM
Treasurys fall as Europe approaches new debt plan

U.S. government bond prices fell Wednesday as European leaders discussed a new plan to resolve the region's debt crisis.

The price of the 10-year Treasury note fell 40.62 cents for every $100 invested Wednesday. The yield rose to 2.93 percent from 2.89 percent late Tuesday.

European leaders met with hopes of agreeing on a new plan to address the region's debt crisis, which they will present at an emergency summit being held Thursday. The crisis has roiled global financial markets in recent weeks, causing bond prices to rise as traders seek out relatively stable investments.

Traders were also cautiously watching talks in Washington over averting a default on U.S. debt obligations on Aug. 2 by raising the country's borrowing limit.

The 30-year Treasury bond lost $1.03 per every $100 invested. Its yield rose to 4.25 percent from 4.19 percent. Bond yields fall when their prices rise.

The yield on the 3-month bill was 0.01 percent. Its discount was 0.03 percent.