Treasurys edge higher on hopes of US debt deal

AP News
Posted: Jul 22, 2011 5:16 PM
Treasurys edge higher on hopes of US debt deal

Treasury bond prices edged higher Friday following reports that President Obama was close to reaching a deal with Congressional Republicans to raise the nation's debt ceiling.

The deal was said to include $3 trillion in spending cuts and changes to the tax code that could raise as much as $1 trillion in new revenues. Neither party confirmed that an agreement was imminent. A deal will allow the U.S. to avoid defaulting on its debt.

The 10-year Treasury note rose 40 cents for every $100 invested Friday. Its yield fell to 2.96 percent from 3 percent late Thursday.

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The 30-year Treasury bond gained $1 for every $100 invested. Its yield fell to 4.26 percent from 4.31 percent. The yield on the two-year note was unchanged at 0.40 percent.

The yield on the three-month T-bill remained at 0.03 percent. Its discount was 0.04 percent.