LONDON: US Treasuries prices fell in Europe on Monday after Greek politicians passed tough austerity measures vital to securing a second bailout and avoiding a chaotic default, undermining demand for safe-haven assets.
Treasuries reversed Friday's rise, when investors wary about the vote turned to low-yielding assets perceived as a relatively safe investment.
Market participants said Treasuries had scope to fall further in the session but demand for safe havens remained underpinned by concerns over the implementation of Greek reforms and problems in other euro zone countries, especially Portugal.
As Greek lawmakers passed the deeply unpopular bill on Sunday night, protesters set buildings on fire in Athens, highlighting how difficult it will be for the country to implement the reforms.
"The Greece risks, let alone any others within the euro zone, are far from assuaged from yesterday's vote, hence why really all we're doing in Treasuries today is marking ourselves back towards the levels where we were on Friday morning," said Marc Ostwald, a strategist at Monument Securities.
T-note futures fell 12/32 to 131-01/64. The US 10-year yield was at 2 percent, having dipped to 1.97 percent on Friday, while 30-year debt yielded 3.16 percent.
One trader said 10-year yields may re-test their 2012 highs around 2.10 percent this week.
The market is turning its attention to US President Barrack Obama's 2013 budget proposal later on Monday and the slew of US data this week, including retail sales, inflation and industrial output.
"We've got all the news out of Greece for now and the market's going to be happy to take a breather on that," the trader added.
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