Treasury prices jump with Greek rescue in doubt

AP News
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Posted: Nov 01, 2011 4:02 PM
Treasury prices jump with Greek rescue in doubt

U.S. government bond prices rose sharply Tuesday after the Greek prime minister said he would put Europe's rescue plan for Greece to a popular vote.

In late afternoon trading, the price of the benchmark 10-year Treasury note was up $1.38 for every $100 invested. The higher price pushed the yield down to 1.96 percent from 2.16 percent late Monday.

Stocks fell sharply around the world Tuesday. Traders moved money into the U.S. dollar, Treasurys and other assets considered safe. The Greek vote threatens to unravel a plan aimed at resolving the European debt crisis, which European leaders unveiled just last week.

In other trading, the 30-year Treasury bond jumped $3.56, which sent its yield down to 2.96 percent from 3.38 last Friday.

The yield on the two-year Treasury note fell to 0.23 percent from 0.26 percent.

The three-month T-bill yielded 0.02 percent. Its discount wasn't available.