Treasurys slip after Berlusconi agrees to resign

AP News
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Posted: Nov 08, 2011 3:52 PM
Treasurys slip after Berlusconi agrees to resign

U.S. government bond prices dipped Tuesday after Italy's prime minister agreed to resign.

Silvio Berlusconi said he would step down once Italy's parliament approves a package of austerity measures. Many in the bond market consider Berlusconi an obstacle to economic reforms needed to help Italy escape a debt crisis.

Concerns that Europe's debt crisis would spread have pushed up Italy's borrowing rates. Those concerns have also lowered U.S. rates as traders buy investments seen as relatively safe, such as Treasurys.

The yield on the 10-year Treasury note rose to 2.08 percent late Tuesday, up from 2.01 percent the day before. The price fell 37.5 cents for every $100 invested. Bond yields rise when prices fall.

The yield on the 2-year Treasury note edged up to 0.25 percent from 0.23 percent. The 30-year bond yield rose to 3.14 from 3.05 percent. The price fell 90.6 cents.

In the market for Treasury bills, the 3-month T-bill paid a 0.02 yield.