Treasury prices edge lower after Europe deal

AP News
Posted: Dec 09, 2011 4:23 PM
Treasury prices edge lower after Europe deal

U.S. government bond prices edged lower Friday after European leaders reached a deal to put tighter limits on government budgets.

News of the agreement pushed stock markets higher Friday and weakened the demand for Treasurys, a hiding spot for traders in times of trouble.

The price of the benchmark 10-year Treasury note lost 90.6 cents for every $100 invested. The lower price raised the yield to 2.07 percent from 1.97 percent late Thursday.

Many traders see the deal as a step toward resolving Europe's long-running debt crisis, but not a complete fix. Government borrowing costs for deeply indebted Spain and Italy were little changed on Friday.

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In other Treasury trading, the 30-year Treasury bond dropped $2.21 per $100, and its yield increased to 3.11 percent from 2.99 percent. The two-year note's yield remained unchanged at 0.23 percent.

In the market for short-term bills, the three-month T-bill paid a 0.003 percent yield.