Treasurys little changed on Spain bailout report

AP News
Posted: Sep 21, 2012 5:07 PM

U.S. government bond prices were little changed Friday amid news that Spain is closer to getting a financial lifeline.

The 10-year Treasury note inched up 9.37 cents for every $100 invested in late Friday trading. The slightly higher price pushed its yield down to 1.75 percent, from 1.77 percent late Thursday. Bond yields fall when prices rise.

The Financial Times reported that Spain and the European Commission were nearing an agreement that would help Spain receive a rescue package. Mario Draghi, the European Central Bank's head, has pledged to support the government bond markets of struggling European countries, but only after they ask for help from Europe's bailout fund.

In other Treasury trading, the 30-year bond dropped 3.12 cents, leaving its yield at 2.95 percent, unchanged from late Thursday. The two-year note's yield edged up to 0.27 percent from 0.26 percent.

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