Treasury prices fall

Prices for US debt retreat as rising stock prices draw investors away from safe-haven assets.

EMAIL  |   PRINT  |   SHARE  |   RSS
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all RSS FEEDS (close)
By Ben Rooney, staff writer

Which money-losing Fortune 500 company is most likely to turn a profit this year?
  • GM
  • Citigroup
  • Macy's
  • Ford
Click the chart for current bond prices and yields.

NEW YORK ( -- Treasurys fell Tuesday, giving back earlier gains, as investors chased higher returns in the stock market.

The retreat comes after concerns about the health of the banking sector and dour corporate results had boosted demand for the safety of U.S. debt earlier in the session. But the sentiment changed later in the day after Treasury Secretary Tim Geithner defended the government's handling of the controversial $700 billion bailout program.

Geithner's remarks helped spark a bank-lead rally on Wall Street, with the major stock indexes resuming a six-week rally that had fizzled in the previous session. Wall Street ended the day higher, with the Dow Jones industrial average adding 1.6%.

Meanwhile, the Federal Reserve bought another $7 billion worth of Treasurys as part of its plan to buy $300 billion in government debt. The central bank purchased securities that mature between February 2016 and February 2019. The Fed also plans to buy Treasurys on Thursday.

By purchasing Treasurys, the Fed hopes to lower interest rates on certain business and consumer loans, such as mortgages, to help get the troubled economy back on track.

As the Fed keeps up its buying, the Treasury Department is set to auction another $8 billion in Treasury Inflation-Protected Securities, or TIPS, Thursday.

Bond prices: The benchmark 10-year note was down 17/32 to 98 24/32, and its yield rose to 2.9% from 2.84% late Monday. Bond prices and yields move in opposite directions.

The 30-year bond lost 30/32 to trade at 95 22/32, and its yield rose to 3.74% from 3.67%.

The 2-year note slid 2/32 to trade at 99 28/32 and its yield rose to 0.95% from 0.92%.

The yield on the 3-month note rose to 0.15% from 0.13%.

Meanwhile, lending rates were mixed. The 3-month Libor was unchanged from Monday at 1.10%, according to The overnight Libor rate decreased to 0.2% Tuesday from 0.22% Monday.

Libor, the London Interbank Offered Rate, is a daily average of rates that 16 different banks charge each other to lend money in London. To top of page

They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More
Royal wedding: How much will it cost? Meghan Markle's wedding to Prince Harry could cost millions once security is included in the bill. See how the costs break down. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play