Bonds mostly flat as traders unsure about Europe

AP News
Posted: Nov 02, 2011 5:08 PM
Bonds mostly flat as traders unsure about Europe

U.S. Treasury prices were little changed Wednesday as traders waited to see if European leaders would be able to save their week-old plan to prevent a financial crisis in the continent.

The price of the benchmark 10-year Treasury note edged down 13 cents for every $100 invested. The yield was 1.99 percent, up from 1.96 percent late Tuesday.

Bond traders preferred to wait before getting out of the safe haven of Treasurys, even as the stock market rallied. The Dow Jones industrial average closed up 178 points at 11,836.

Last week, European leaders agreed to a wide-ranging plan to shore up European banks and heavily indebted countries like Greece and Italy. However, it was unclear if the plan would work because of disagreements within Greece's government.

The yield on the two-year Treasury note was unchanged at 0.23 percent.

The yield on the 30-year Treasury bond rose to 3.01 percent from 2.97 percent. Its price edged down 22 cents per $100 invested.

The three-month T-bill's yield was zero percent. Its discount wasn't available.