Treasury prices falling on European debt hopes

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Associated Press

Posted on August 21, 2012 at 3:00 PM

Updated Tuesday, Aug 21 at 3:00 PM

U.S. bond prices are falling on hopes that European officials will agree soon on steps to deal with the region's debt crisis.

The price of the 10-year Treasury note fell 21.88 cents for every $100 invested in early afternoon trading Tuesday. The yield rose to 1.84 percent from 1.81 percent late Monday.

Since hitting a record low of 1.39 percent July 24, the yield on the 10-year note has mostly been rising. The yield is now back to levels from early May.

Investors are pinning their hopes on the European Central Bank buying government bonds of troubled countries to keep those countries' borrowing costs low.

In other trading, the 30-year Treasury bond fell 43.75 cents for every $100 invested. Its yield rose to 2.94 percent from 2.92 percent.

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