Treasuries get a year-end boost

chart_ws_bond_10yearyield.top.pngClick chart for more bond yields. By Hibah Yousuf, staff reporter


NEW YORK (CNNMoney) -- U.S. treasury prices rose during a shortened trading session Friday, ending a volatile year on a positive note.

The price on the benchmark 10-year note rose slightly, pushing the yield down to 3.30% from 3.37% late Thursday. Bond prices and yields move in opposite directions. The yield on the 30-year bond fell to 4.33%, while the yield on the 2-year note edged down to to 0.60%. The 5-year note's yield slipped to 2.01%.

Trading volume remained light amid the year-end holiday period.

U.S. debt, which is considered a safe haven, was an attractive asset to investors during the earlier part of 2010, as concerns over Europe's sovereign debt issues were at the forefront.

But as those worries faded, so did the appeal for Treasuries. That has sent yields higher, especially as better-than-expected economic news bolstered demand for riskier asset. After hitting a low below 2.4% in early October, the benchmark yield finished the year at 3.3%.

As traders get back in gear for 2011 next week, analysts expect yields will continue rising as the economy recovers, despite the Federal Reserve's attempt to push rates lower.

In November, the Fed announced it will pump $600 billion into the economy by June through purchases of long-term Treasuries. As part of the program, which winds down during the middle of next year, the central bank is expect to scoop up more Treasuries next week.

The Treasury market closed at 2 p.m. ET Friday.  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 fixed3.90%3.88%
15 yr fixed3.06%3.03%
5/1 ARM3.05%3.05%
30 yr refi3.96%3.94%
15 yr refi3.11%3.12%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 18,111.85 -120.17 -0.66%
Nasdaq 5,060.44 -28.92 -0.57%
S&P 500 2,114.25 -11.81 -0.56%
Treasuries 2.20 -0.01 -0.68%
Data as of 9:49am ET
Company Price Change % Change
Time Warner Cable In... 179.07 7.89 4.61%
Apple Inc 132.30 -0.24 -0.18%
General Electric Co 27.54 -0.14 -0.50%
Bank of America Corp... 16.69 -0.06 -0.36%
Comcast Corp 58.54 0.67 1.16%
Data as of 9:34am ET

Sections

Malaysia Airlines is nearly finished with its tough restructuring plan -- which will include cutting about one-third of its workforce -- in its efforts to recover after two plane tragedies last year. More

The True Cost, a new documentary, chronicles the evils of the clothing industry and asks us to stop buying so much cheap stuff More

Amazon gives in to the pressure and stops funneling its European sales through low-tax Luxemburg. More

Sarah Kauss launched S'well to rid the world of plastic water bottles. In five years, she's sold 4 million of her stainless steel bottles. More