Treasurys rise as fear of European debt returns

By Salon Staff
Published April 5, 2012 3:09PM (EDT)

Treasury prices are rising as fear about Europe's shaky financial situation returns to the market.

Traders questioned the Spanish government's ability to raise money in the bond market a day after a weak auction of Spanish debt. They sold bonds issued by Spain, Italy and other European nations perceived as having too much debt. Borrowing costs rose for Spain, Italy and France.

A sharp decline in U.S. and world stock markets Wednesday also freed up money for low-risk investments such as Treasurys.

The price of the 10-year Treasury note rose 22 cents for every $100 invested, pushing its yield down to 2.20 percent as of 10:45 EDT Thursday from 2.23 percent late Wednesday.


Salon Staff

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