Treasury prices edged up from their lowest levels this year Tuesday as uncertainty about a deal to reduce Greece's debt drew money into safer investments.
European leaders are locked in negotiations with owners of debt issued by Greece. They want the bondholders to write off half of Greece's debt load. The two sides disagree about how much interest the new Greek bonds would carry.
Traders sold other European government bonds Tuesday, fearing that a messy default by Greece would spark financial panic. French and Italian bond yields rose.
Traders bought dollars and ultra-safe Treasurys. The yield on the 10-year Treasury note edged down to 2.06 percent in late trading from 2.07 percent late Monday. Its price rose 9.4 cents per $100 invested. The yield reached 2.10 percent on Monday. It hasn't settled that high since Oct. 31.
In other trading, the yield on the 30-year bond was unchanged at 3.15 percent.
The yield on the two-year Treasury note edged down to 0.24 percent from 0.25 percent. Earlier Tuesday the government sold $35 billion in two-year notes at a yield of 0.25 percent.
The three-month T-bill yielded 0.04 percent.