Treasurys Rise; Europe Jitters Keep Demand Strong


Salon Staff
December 29, 2011 2:54AM (UTC)

NEW YORK (AP) — Treasury prices climbed as more signs of strain emerged in the European banking system.

The price of the benchmark 10-year Treasury note rose 75 cents per $100 invested. Its yield fell to 1.93 percent from 2 percent late Tuesday.

News that European lenders parked a record amount of cash with the European Central Bank rather than lend it to each other got investors worried. Also the yield on Italy's 10-year government bond was still dangerously high at 6.97 percent, even after two successful auctions of short-term debt.

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The latest worries about Europe kept demand strong for Treasurys. Trading was quiet in the holiday-shortened week.

The yield on the 30-year bond fell to 2.92 percent from 3.03 percent as its price rose $2.19 per $100 invested.


Salon Staff

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