Treasurys up on jitters over MF Global bankruptcy

AP News
Posted: Oct 31, 2011 3:43 PM
Treasurys up on jitters over MF Global bankruptcy

Treasury prices rose sharply Monday as worries returned to the financial markets on news of the bankruptcy of securities firm MF Global. Traders were also waiting for more details on Europe's plan to contain the Greek debt crisis.

The price of the benchmark 10-year Treasury note rose $1.38 Monday for every $100 invested, pushing its yield down to 2.16 percent from 2.33 percent late Friday.

Last week European leaders reached an agreement aimed at shoring up the region's banks and preventing a debt crunch in Greece from bringing down Europe's financial system. However, markets turned jittery because the plan didn't reveal key details.

Bank stocks fell broadly Monday after the securities firm MF Global filed for bankruptcy protection. Last week the company's debt was downgraded to junk status by ratings agencies concerned about its large holdings of European government debt. The company is headed by former New Jersey Governor and Goldman Sachs chairman Jon Corzine.

The 30-year bond soared $4.09, sending its yield down to 3.17 percent from 3.38 last Friday.

The yield on the 2-year Treasury note fell to 0.26 percent from 0.30 percent. The yield on the three-month Treasury bill fell to negative 0.01 percent, down from 0.01 percent. Its discount wasn't available.