Treasury Yields Hit '12 Highs On Greek Deal Hopes

Published January 23, 2012 5:27PM (EST)

Treasury yields are falling from their highest levels since early December as traders monitor talks aimed at averting financial catastrophe in Greece.

Greece is asking private bondholders to reduce its debts so that it will not default on its obligations. That could roil financial markets worldwide.

High hopes for a deal between Greece and its lenders caused traders to sell ultra-safe Treasurys early Monday, pushing yields up to the highest levels in more than a month. A bond's yield rises as its price falls.

Yields edged lower in daytime trading after declining U.S. stock prices pushed cash back into low-risk Treasurys.

The yield on the 10-year Treasury note is 2.05 percent as of 12:15 p.m. Eastern time. It rose to 2.09 percent earlier Monday, from 2.03 percent late Friday.

By Salon Staff

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