Worries over Europe lure traders into Treasurys
U.S. Treasury prices edged up Monday as worries about the global economy lured traders into the safest of government bonds.
Borrowing costs for the Spanish government crept back above 7 percent on Monday, raising concerns that the country may need a financial lifeline. Greece, Ireland and Portugal all asked for help from international lenders after their borrowing costs crossed that level.
Finance ministers from the countries that share the European currency are meeting in Brussels to work out the details of an aid package to shore up Spain's banks. Reports over the weekend said Finland and the Netherlands could oppose some of the proposals to help Spain.
In light trading, the yield on the benchmark 10-year Treasury fell to 1.51 percent from 1.55 percent late Friday. The price rose 37.5 cents for every $100 invested.
The yield on the 30-year bond fell to 2.62 percent from 2.67 percent. Its price rose 87.5 cents for every $100. The yield on the two-year note slipped to 0.27 percent from 0.28 percent.
In the market for short-term Treasurys, the yield on the three-month T-bill was 0.07 percent.