US Treasuries prices rose on Friday before a confidence vote in Greece on the prime minister with the outcome likely to determine whether the nation will get a 130-billion-euro rescue package to avert a default. The market erased earlier losses in choppy trading as investors moved back into bonds, unsettled by Italy, whose wobbly economy poses an even bigger threat to the eurozone and the global financial system than Greece.
"The market has priced in the borderline chaos on the Greek front," said Robert Tipp, chief investment strategist at Prudential Fixed Income in Newark, New Jersey, which manages $240 billion. The benchmark 10-year US Treasury note rose 10/32 in price for a yield of 2.04 percent, down nearly 4 basis points for the day, after erasing a drop of 19/32.
For the week, the 10-year note's yield was on track to fall more than 29 basis points, the biggest weekly fall since the week ended August 14, according to Tradeweb. The 30-year bond climbed 17/32 to yield 3.10 percent, down 3 basis points from late Thursday. The 30-year yield was down 28 basis points for the week, the first decline in six weeks.
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