10-year yield over 2 percent as Greece nears deal

AP News
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Posted: Jan 20, 2012 5:04 PM
10-year yield over 2 percent as Greece nears deal

Treasury prices fell Friday after Greece came closer to avoiding a default, sending the benchmark 10-year note's yield over 2 percent for the first time in two weeks.

Greece said it was confident of a debt relief deal with private creditors, a crucial step in avoiding default. Greece does not have enough money to cover an $18.7 billion bond repayment in March. Prime Minister Lucas Papademos met for a third day with negotiators from the Institute of International Finance, which represents private creditors.

The price on the 10-year Treasury note fell 46.8 cents for every $100 invested. That pushed its yield up to 2.03 percent from 1.98 percent late Thursday.

The price of the 30-year Treasury bond fell $1.21, lifting its yield to 3.11 percent from 3.04 percent.

There was also more positive data on the U.S economy. That usually reduces the appeal of government bonds as a safe haven. The National Association of Realtors said home sales rose 5 percent in December, the third straight monthly increase.

The yield on the two-year Treasury rose to 0.24 from 0.23 percent.

In the market for short-term Treasurys, the three-month T-bill paid a yield of 0.05 percent, up from 0.04 percent.