By The Associated Press
Investors dumped Treasurys on Friday, pushing yields to four-month highs, as they moved money into stocks and other riskier bets.
The price of the benchmark 10-year Treasury note fell $1.31 for every $100 invested. The yield, which moves in the opposite direction, rose to 1.87 percent from 1.73 percent late Thursday. The yield hasn't been that high since early May.
The Federal Reserve unveiled plans Thursday to stimulate the economy by buying mortgage bonds and keeping short-term interest rates near zero until mid-2015. Investors have reacted by selling Treasurys and plowing money into the stock market.
The Dow Jones industrial average rose 54 points to 13,593 on Friday. That is its highest level since December 2007, the start of the Great Recession. Stocks in Europe and Asia also rose.
Investors have mostly been selling 10-year Treasurys since late July when the yield hit a record low of 1.39 percent. Then Mario Draghi, the president of the European Central Bank, said he would do "whatever it takes" to hold the eurozone together and investors began pulling money out of haven assets like Treasurys, sending their yields higher.
The yield on the 30-year bond also hit a four-month high on Friday, rising to 3.09 percent from 2.94 percent. The price fell $2.97 for every $100 invested.
The yield on the five-year note rose to 0.72 percent from 0.66 percent. The yield on the two-year note was unchanged at 0.26 percent. The yield on the three-month T-bill rose was also unchanged, at 0.10 percent.
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