Treasury yields up slightly as markets calm down

AP News
|
Posted: Jun 05, 2012 4:15 PM
Treasury yields up slightly as markets calm down

U.S. Treasury yields rose slightly as other markets quieted down.

On Tuesday, the yield on the benchmark 10-year Treasury note rose to 1.57 percent, up from 1.52 percent late Monday. Its price fell 37.5 cents for every $100 invested as demand for them fell.

Stocks inched higher Tuesday following a sharp drop Friday on a dismal U.S. jobs report.

Last week, yields on the 10-year note hit a record low of 1.44 percent after investors started buying Treasurys in a nervous reaction to worries about the slowing U.S. economy.

On Friday, the U.S. government reported that the overall economy in May added the fewest number of jobs in a year. The report heightened fears that the economy is struggling.

The report came amid worries that the global economy was slowing and Europe was struggling to resolve its debt crisis.

Spain's prime minister issued a plea for Europe "to support those that are in difficulty." And Spain's finance minister said the country was in danger of not being able to borrow money on the open market.

The yield on the 30-year bonds also rose to 2.63 percent from 2.56 percent. Its price fell $1.43 for every $100 invested.

The two-year Treasury yield remained flat at 0.25 percent. The three-month T-bill rose to 0.08 percent from 0.06 percent.