Interest rates climb in bond market after Europe agrees to nearly $1 trillion rescue plan

Interest rates surge as Europe launches bailout

NEW YORK — Interest rates are surging in the bond market after European leaders announce measures aimed at shoring up the euro and preventing Greece’s debt crisis from spreading.

European Union leaders and the International Monetary Fund agreed Monday to a nearly $1 trillion aid package that will help weak European countries that are struggling to meet their debt commitments.

Investors are diving back into riskier assets like stocks at the expense of Treasurys.

The yield on the 10-year Treasury note rose to 3.55 percent in morning trading from 3.43 percent from late Friday. Its price fell 93.75 cents to $100.59375.

The 10-year yield is often used as a benchmark for interest rates on consumer loans and mortgages.