Treasurys mixed as calm returns to stock market

AP News
Posted: Aug 22, 2011 5:43 PM
Treasurys mixed as calm returns to stock market

A relatively calm day on Wall Street Monday helped lift Treasury yields from last week's record lows.

The price of the 10-year Treasury note fell 34.3 cents for every $100 invested in late-afternoon trading. That pushed its yield to 2.10 percent from 2.07 percent late Friday.

The 30-year Treasury bond fell 56.3 cents for every $100 invested. Its yield rose to 3.42 percent from 3.39 percent late Friday.

The yield on the two-year note also edged up, to 0.21 percent from 0.20 percent. Bond yields rise when their prices fall.

The yield on the three-month bill rose to 0.02 percent from 0.01 percent late Friday. Its discount wasn't available.

Treasury yields hit record lows last week as money flowed into lower-risk assets. Stock indexes were swinging wildly. Fears about Europe's financial crisis and another U.S. recession made other investments less attractive.

The Treasury Department expects to auction $99 billion of new debt this week: $35 billion in two-year notes on Tuesday, $35 billion in five-year notes on Wednesday and $29 billion in seven-year notes on Thursday.

Bond traders are awaiting a speech on Friday from Federal Reserve Chairman Ben Bernanke. Many hope that he will announce another round of bond-buying by the central bank. That would likely boost demand for Treasurys, lifting their prices and keeping yields low. Most economists doubt the Fed will make such a move.