NEW YORK (CNNMoney.com) -- Treasury prices slipped and shed their safe-haven appeal Friday after Greece said it will seek a bailout from the European Union to abet its debt crisis.
What prices are doing: The benchmark 10-year note fell 11/32 to 98-14/32, pushing the yield up to 3.82%. Bond prices and yields move in opposite directions.
The 30-year bond slipped 13/32 to 99-11/32, and its yield rose to 4.67%.The 2-year note shed 2/32 to 99-28/32 with a 1.08% yield. The 5-year note was down 7/32 to 99-19/32 with a yield of 2.59%.
What's moving the market: Greek Prime Minister George Papandreou formally requested about $60 billion in financial aid from the EU and the International Monetary Fund on Friday -- a day after Greek bonds reached record-high yields of 8.8%, on par with debt for third-world countries.
U.S. debt prices rose on Greece's debt woes the day before, when Moody's cut Greece's credit rating a notch and the EU announced the country's 2009 deficit may total more than originally expected. That bad news for Greece was good news for U.S. debt issues, which are deemed a safe-haven alternative when other foreign debt markets are hurting.
On Friday, after Papandreou's request for aid eased worries that the country will find a solution to its debt, the U.S. bonds market unwound some of those safety bets.
Investors are also looking ahead to the Treasury Department's auction of $129 billion in securities next week. Anticipation of new supply usually keeps prices down ahead of auctions.
What analysts are saying: Investors have been "creeping to the exits," seeking to minimize their exposure to Greek debt for weeks, said Kevin Giddis, president of fixed income at Morgan Keegan.
|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||3.80%||3.88%|
|15 yr fixed||3.20%||3.23%|
|30 yr refi||3.82%||3.93%|
|15 yr refi||3.20%||3.23%|
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