Treasury yields remain low as European rates rise

AP News
Posted: Nov 15, 2011 4:28 PM
Treasury yields remain low as European rates rise

Treasury yields were little changed in late trading Tuesday as a spike in borrowing costs for Italy kept demand strong for U.S. government debt.

The price of the 10-year note edged down 9.4 cents per $100 invested. The yield, or implied interest rate, inched up to 2.05 percent from 2.04 percent late Monday. The yield has remained below 2.10 percent this month as investors became nervous that Italy might become the next European country to get ensnared in the region's debt crisis.

A surge in interest rates for government debt from Italy, Spain and other European countries renewed concern about Europe's debt crisis. The yield on Italy's 10-year bond jumped back above 7 percent Tuesday. Greece, Ireland and Portugal were forced to seek lifelines when their borrowing rates crossed the same mark.

In other trading, the price of the 30-year bond also fell 9.4 cents per $100. Its yield was flat at 3.08 percent.

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

The three-month T-bill paid a yield of 0.01 percent. Its discount wasn't available.