Lingering doubts over Greece deal lift Treasurys

AP News
Posted: Feb 22, 2012 4:09 PM
Lingering doubts over Greece deal lift Treasurys

Treasurys edged higher Wednesday as Greece scrambled to implement emergency budget laws required for the country to receive its latest financial rescue package.

Greece's coalition government is pushing through legislation that will further cut incomes and state spending. The changes were demanded by other European countries in return for a second bailout and debt relief for Greece.

Investors worry that Greece might still default, and send shock waves through markets, despite a comprehensive debt relief plan announced Tuesday.

The yield on the 10-year Treasury note fell to 2 percent Wednesday from 2.05 percent late Tuesday. Its price rose 50 cents per $100 invested. The yield on the 30-year bond fell to 3.14 percent from 3.19 percent. Its price rose $1.28.

In other trading, the yield on the two-year note was flat at 0.31 percent. The three-month T-bill paid a yield of 0.08 percent, up slightly from 0.07 percent.

The government sold $35 billion of five-year notes at a yield of 0.90 percent. Demand for the notes was slightly weaker than at other recent auctions.