Treasuries Rise, 10-Year Yields Fall to Record on Greece Turmoil
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Treasuries rose for a second straight week, pushing 10-year note yields to a record low, as Germany prepared plans to shore up its banks in the event of a Greek default, bolstering demand for a refuge.
The extra yield investors get to hold 30-year bonds instead of two-year notes was the smallest in more than a year on speculation the Federal Reserve may decide at its meeting later this month to replace some of its shorter-maturity U.S. securities with longer-term debt to lower borrowing costs. Greece rejected talk of a default as “organized speculation,” according to an e-mailed statement from the finance ministry.