Treasurys slip on Greek bailout

By Annalyn Censky, staff reporter


NEW YORK (CNNMoney.com) -- Treasurys fell Monday as the stock market posted gains on news of a bailout for Greece and on better-than-expected economic reports.

What prices are doing: The benchmark 10-year note fell 10/32 to 99-14/32, pushing the yield up to 3.7%. Bond prices and yields move in opposite directions.

10yearyield.png
Click the chart for current prices and yields.

The 30-year bond fell 8/32 to 101-16/32 with a 4.54% yield. The 2-year note slipped to 100 with a 1.01% yield. The 5-year note fell to 100-5/32, yielding 2.48%.

What's moving the market: Over the weekend, Greece accepted a $146 billion bailout and agreed to cut its budget deficit to 3% of its gross domestic product by 2014.

Concerns about Greece's unresolved debt crisis have moved the markets for months, and news of a bailout package eased Wall Street worries, leading to gains in the stock market Monday.

As investors flock to riskier investments like equities, their appetite for "safe-haven" trades like Treasurys often weakens. U.S. bonds are considered a low-risk investment in times of economic uncertainly because they're backed by the government.

Bonds also fell on better-than-expected increases in personal spending and manufacturing activity reported on Monday morning. Separate reports showed personal spending rose for the sixth straight month in March and the manufacturing sector grew for the ninth month in a row in April.

What analysts are saying: News of a bailout for Greece may be pushing Treasury prices down Monday, but a one-day slip is not enough to indicate investors are completely convinced the bailout will work, said Kenneth Naehu, managing director and head of fixed income at Bel Air Investment Advisors.

"The market is not sold on that there's a solution for Greece. Until we see a significant rally in Greek bonds, it's hard to believe the market will have any conviction that Greece has turned the corner," he said. 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 fixed4.23%4.19%
15 yr fixed3.26%3.27%
5/1 ARM3.70%3.38%
30 yr refi4.22%4.18%
15 yr refi3.26%3.26%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 17,279.74 13.75 0.08%
Nasdaq 4,579.79 -13.64 -0.30%
S&P 500 2,010.40 -0.96 -0.05%
Treasuries 2.59 -0.04 -1.60%
Data as of 7:01pm ET
Company Price Change % Change
Yahoo! Inc 40.93 -1.16 -2.74%
Microsoft Corp 47.52 0.84 1.80%
Bank of America Corp... 16.95 -0.09 -0.53%
Oracle Corp 39.80 -1.75 -4.21%
Facebook Inc 77.91 0.91 1.18%
Data as of Sep 19

Sections

The automaker is recalling Cadillac XTS and Chevrolet Impalas because of a problem with the electronic parking brake arm. More

The Bill and Melinda Gates Foundation has given more money than many western nations. More

It's really good to be Larry Ellison. The Oracle founder is stepping down as CEO, so maybe he'll have more time to enjoy his glamorous life. More

As Occupy Wall Street goes on its debt-abolishing tear, thousands of people across the country are begging them to forgive their loans. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.