Treasurys down as panic ebbs from global markets

AP News
Posted: Aug 15, 2011 6:13 PM
Treasurys down as panic ebbs from global markets

Treasury prices fell Monday as investors no longer rushed for the safety of U.S. debt.

Global markets rose on better economic news from Japan. And in the U.S., a series of merger and acquisition announcements encouraged investors.

The benchmark 10-year Treasury fell 43.75 cents for every $100 invested. That sent the yield up to 2.31 percent from 2.26 percent late Friday. Treasury yields rise when prices fall.

Last week, wild swings in stocks sent the 10-year yield to a record low 2.03 percent as investors looked for safe places for their money. On Monday, global markets rose after Japan said its economy shrank at a 1.3 percent annual rate in the second quarter. That's less than half the drop economists expected after the March 11 earthquake.

A flurry of acquisitions in the U.S. lifted stocks. Google led Monday's deals with its $12.5 billion purchases of Motorola Mobility Holdings. Time Warner Cable, Cargill and Transocean also announced purchases of more than $1 billion each.

In other trading, the 30-year Treasury fell 81.25 cents for every $100 invested, sending its yield up to 3.77 percent from 3.73 percent late Friday.

The three-month Treasury bill paid a 0.01 percent yield. Its discount was 0.02 percent.