Rising stock market eases demand for Treasurys, sending rates higher

Interest rates rise in bond market as stocks rally

NEW YORK — A sharp rally in stocks and easing concerns about Europe’s debt situation are sending Treasury prices lower and interest rates higher.

Stock indexes are up about 2 percent Tuesday on encouraging signs from industrial and technology companies. The Dow Jones industrials are up more than 200 points in late trading.

The European Union said Spain, Portugal and several other countries were making progress on reducing their budget deficits, though more remains to be done.

The yield on the 10-year Treasury note, a widely used benchmark for mortgages and other consumer loans, rose to 3.32 percent from 3.26 percent.