Treasurys edge higher in light trading on Europe

AP News
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Posted: Dec 29, 2011 5:14 PM
Treasurys edge higher in light trading on Europe

Demand for U.S. government debt remained strong Thursday as yields on Italian government bonds stayed stubbornly high after the latest auction.

The benchmark 10-year Treasury note edged up 18.8 cents per $100 invested. Its yield fell to 1.90 percent from 1.93 percent late Wednesday.

Italy paid 6.98 percent on a 10-year bond auction, dangerously close to the 7 percent threshold at which Greece and Portugal had to seek bailouts from their creditors. That kept demand high for relatively low-risk assets like Treasurys.

In other trading the 30-year bond rose 37.5 cents. Its yield fell to 2.90 percent from 2.92 percent. The yield on the two-year note was unchanged at 0.27 percent.

The yield on the three-month T-bill was 0.01 percent. Its discount wasn't available.

Trading was quiet on the second-to-last trading day of 2011. Markets will be closed Monday in observance of New Year's Day, which falls on Sunday.