Prices sink in Treasury market as strong earnings news sends stocks higher
By APThursday, July 22, 2010
Treasury prices tumble as stock market rebounds
NEW YORK — Treasury prices ended lower Thursday, sending their yields higher, as a powerful rally in the stock market sapped demand for safe-haven investments.
The yield on the 10-year Treasury note rose back to 2.94 percent from 2.88 percent the day before. That yield helps set interest rates on mortgages and other kinds of loans.
The price of the 10-year note fell 50 cents to $104.719.
Strong earnings reports from Caterpillar, UPS and AT&T sent stock prices sharply higher throughout the day. The Dow Jones industrial average ended with a gain of 202 points.
In other trading, the yield on the two-year note was unchanged at 0.57 percent. Its price was also unchanged.
The yield on the 30-year bond rose to 3.95 percent from 3.89 percent. Its price fell $1 to $107.406.
The yield on the three-month Treasury bill dipped to 0.14 percent from 0.15 percent. Its discount rate was 0.15 percent.
