Treasurys rise after health care bill passes

By Annalyn Censky, staff reporter


NEW YORK (CNNMoney.com) -- U.S. debt prices rose Monday, after the House passed a historic health care bill the previous evening.

What prices are doing: The benchmark 10-year note rose 9/32 to 99-23/32 and its yield fell to 3.664%. The 30-year bond rose 4/32 to 100-27/32 and its yield fell to 4.63%. Bond prices and yields move in opposite directions.

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Click the chart for the latest Treasury prices and yields.

The 2-year note rose 1/32 to 99-26/32 with a yield of 0.98%. The 5-year note rose 8/32 to 99-27/32 with a yield of 2.41%.

What's moving the market: Buzz surrounding the House's passage of a $940 billion health care bill weighed on stocks in the first minutes of Monday trading, but equities recovered soon after. By mid-day trading, stocks had turned higher, led by gains in health care shares.

Continued questions about Greece and other troubled European countries, commonly referred to as "PIIGS" nations, are weighing on European markets, after reports that Germany is reluctant to help resolve the crisis. The PIIGS moniker includes debt-laden Portugal, Italy, Ireland, Greece, and Spain.

What analysts are saying: Uncertainty about the PIIGS nations continues to add to the allure of dollar-denominated assets like Treasurys, Kevin Giddis, president of fixed income at Morgan Keegan, wrote in a report to investors on Monday.

The PIIGS debt crisis will pass eventually, Giddis added, but as long as the near-term outlook for European economies remains cloudy, "I would hate to be a seller of Treasurys at these levels," he said. To top of page

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Dow 32,627.97 -234.33 -0.71%
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Treasuries 1.73 0.00 0.12%
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Ford Motor Co 8.29 0.05 0.61%
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General Electric Co 13.00 -0.16 -1.22%
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