Interest rates rise after China says it doesn’t plan to sell European government bonds

Interest rates rise as investors move out of bonds

NEW YORK — Interest rates are rising in the bond market for a second day after investors gained more confidence about the debt situation in Europe.

China reassured investors Thursday by denying a report that it was considering reducing its holdings of European government bonds. A pullback by such a large investor might have spooked financial markets just as Europe appeared to be making progress on getting its fiscal affairs in order.

Investors moved into stocks at the expense of bonds.

The yield on the 10-year note is up at 3.33 percent in midday trading, from 3.19 percent Wednesday. The 10-year note yield is often used as a benchmark for consumer loans and mortgages.