Treasury 10-Year Yields Fall to Record on Greece Default Concern
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Treasuries rallied, pushing 10-year note yields to a record low, as a surge in European bank and sovereign-credit risk to all-time highs on speculation Greece may default bolstered the refuge appeal of U.S. government debt.
Benchmark 10-year securities gained for a second week as German Chancellor Angela Merkel’s government prepared plans to shore up the nation’s banks in the event that Greece fails to meet the terms of its aid package and misses a payment on its debt. Greece rejected default talk as “organized speculation,” according to an e-mailed statement from the finance ministry.