Treasury prices stop weeklong slide

AP News
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Posted: Mar 20, 2012 5:32 PM
Treasury prices stop weeklong slide

Prices for longer-dated U.S. government bonds edged up Tuesday, ending a weeklong rout in the Treasury market.

A mixed reading on the housing market and an earthquake in Mexico rekindled demand for the safety of U.S. Treasurys. The U.S. government said builders broke ground on fewer homes in February, though they obtained more permits to build homes later in the year.

A strong 7.4-magnitude earthquake hit Mexico and shook central and southern parts of the country. News of the earthquake sent Treasury yields lower Tuesday afternoon.

In late trading, the price of the 10-year Treasury edged up 12.5 cents for every $100 invested. The yield was 2.36 percent, the same as it was late Monday.

Traders had been pulling money from Treasurys over the past week as the outlook for the economy improved. The selling pushed the yield on the 10-year Treasury up to its highest level since late October. The yield rose from 2.03 percent March 12 to as high as 2.39 percent early Tuesday.

In other trading, the price of the 30-year bond rose 56.2 cents for every $100. The long bond's yield slipped to 3.45 percent from 3.46 percent late Monday. The yield on the 2-year note rose to 0.41 percent, up from 0.38 percent.

In the market for short-term Treasury bills, the 3-month T-bill paid a yield of 0.10 percent.