Treasurys fall on Greece plan, economic data

By Ben Rooney, staff reporter


NEW YORK (CNNMoney.com) -- Treasurys fell Wednesday amid signs that Greece's fiscal situation could improve and a stronger-than-expected reading on the services sector.

What prices are doing: The benchmark 10-year note was down 10/32 to 99-26/32 and its yield rose to 3.64% from 3.61%. Bond prices and yields move in opposite direction.

10yr.jpg.mkw.gif
Click the chart for current bond prices and yields.

The 30-year bond fell 17/32 to 100-12/32 and its yield rose to 4.6%. The 2-year note eased 2/32 to 100-3/32 with a yield of 0.81%.

What's moving the market: Investors gravitated toward riskier assets amid easing concerns over Greece's debt woes.

The debt-strapped nation announced a $6.5 billion plan Wednesday to help it cut its ballooning deficit. The plan calls for $3.3 billion in new revenues such as taxes and another almost $3.3 billion in spending cuts, including pension freezes and cuts in civil servants' salaries.

The news helped lift stocks, with the the Dow Jones industrial average gaining about 0.5% in early trading. European shares also advanced.

Treasurys came under pressure after payroll processing firm ADP said private-sector payrolls fell by 20,000 jobs in February, in line with expectations. It was the smallest decline in two years, and raised some hopes that the government's closely watched monthly jobs report could be better than expected when it's released on Friday.

Analysts expect the U.S. to report another loss of 20,000 jobs in February after the economy shed the same number in January. The unemployment rate is forecast to increase slightly to 9.8%.

Also boosting sentiment, the Institute for Supply Management's services sector index rose to 53 in February from 50.5 in January, hitting the highest point since December 2007, at the start of the recession. Economists surveyed by Briefing.com thought it would rise to 51.

Wednesday afternoon, the Federal Reserve releases its "beige book" reading on the economy.

What analysts are saying: "We're seeing some position adjusting after today's data," said Kim Rupert, fixed-income analyst at Action Economics, adding that the numbers were "consistent with ongoing modest recovery."

Investors were also focused on Greece, she said. "Expectations are that there will be a rescue eventually." To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.78%3.79%
15 yr fixed2.98%2.93%
5/1 ARM3.06%2.99%
30 yr refi3.85%3.85%
15 yr refi3.05%3.00%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 18,080.14 21.45 0.12%
Nasdaq 5,092.09 36.02 0.71%
S&P 500 2,117.69 4.76 0.23%
Treasuries 1.92 -0.03 -1.54%
Data as of 7:59am ET
Company Price Change % Change
Microsoft Corp 47.87 4.53 10.45%
Apple Inc 130.28 0.61 0.47%
Comcast Corp 59.64 0.41 0.69%
AT&T Inc 34.01 -0.22 -0.64%
Xerox Corp 11.99 -1.15 -8.75%
Data as of Apr 24

Sections

Shares in Italian bank Intesa Sanpaolo dropped sharply Friday after hoaxers claimed its CEO had quit after faking billions in profits. More

The impact of rising immigration on Britain's economy has become a hot topic in the election campaign. More

Apple is likely to post huge growth in sales and profits thanks to the popularity of the iPhone 6. Here's all the numbers to keep an eye on in the report. More

A Girl Scouts Cookie Oven rolling out to Wal-Mart, Target, Kmart stores this summer will let you bake those iconic thin mints right at home. More