Submitted by Fox First at Ten on June 29th
NEW YORK (AP) - Treasury prices fell Friday on hopes that the European debt crisis will ease after leaders there agreed to make it easier for banks to tap bailout funds.
The yield on the 10-year Treasury note rose to 1.65 percent from 1.59 percent late Thursday. Its price fell 59.4 cents for every $100 invested.
European leaders surprised markets by striking a substantive deal that would allow banks to access loans directly from regional bailout funds. Previously, the emergency loans went first to European governments, which would then lend them to banks. The leaders also agreed to ease unpopular austerity measures in Greece and other countries that have received emergency financing.
That decreased demand for low-risk assets as traders shifted money into stocks. The Dow Jones industrial average soared 278 points.
In European trading, the yield on the 10-yield Spanish government bond fell to 6.34 percent, a sharp move of more than half of a percentage point. That means investors are more confident that the Spanish government will be able to repay its debts.
In the U.S., the yield on the 30-year Treasury bond rose to 2.76 percent from 2.68 percent the day before. Its price fell $1.69 per $100.
The yield on the two-year note was flat at 0.32 percent. The three-month T-bill paid a yield of 0.08 percent, up from 0.07 percent.
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