Treasury prices rise after news of Spain recession

AP News
Posted: Apr 30, 2012 5:00 PM
Treasury prices rise after news of Spain recession

Investors bought U.S. government bonds Monday after fresh worries emerged about Spain's economy.

Spain said it was back in recession for the second time in three years. Investors worried that Spain might need a rescue as Greece and Ireland did. But rescuing the fourth-largest economy in the 17-country euro zone could prove to be too expensive for Europe's bailout funds.

U.S. Treasurys are viewed as one of the safest investments in the world and usually rise in value when investors are anxious.

The price of the benchmark 10-year Treasury note rose 19 cents for every $100 invested. The yield on the note fell to 1.92 percent from 1.93 percent late Friday.

Already, investors are getting skittish because of evidence that the U.S. economic recovery may be slowing. On Monday, there was further evidence with the Commerce Department said Americans slowed down spending a little in March _ consumer spending increased just 0.3 percent last month after a 0.9 percent gain in February.

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The 30-year Treasury bond rose 15 cents for every $100 invested. Its yield remained flat at 3.11 percent.

The yield on the two-year Treasury note fell to 0.26 percent from 0.27 percent. The yield on the three-month Treasury bill was unchanged at 0.09 percent.