Interest rates rise as stocks retreat on growing concerns over Greece’s debt crisis

Interest rates rise as stocks push lower

CHARLOTTE, N.C. — Interest rates fell in the bond market Friday as renewed concerns about Greece’s ability to pay its debts left investors questioning how strong the global economy is.

Traders took safety in Treasurys Friday as worries about Greece’s ability to handle its massive debt load sent U.S. and overseas markets down. The lack of significant economic news gave investors little additional direction.

The yield on the 10-year Treasury note maturing in February 2020 fell to 3.66 percent in trading Friday from 3.68 percent late Thursday. Its price rose 4/32 to 99 21/32. The yield of the 10-year note is linked to interest rates on mortgages and other consumer loans.

Treasury bond prices usually rise and yields fall when the stock market goes down. That’s because traders view government bonds as safe investments, while stocks typically are seen as risky but also offering bigger returns.

Markets around the world were mixed after Greece said it might need to turn to the International Monetary Fund for support if European leaders can’t agree on a bailout plan next week. Worries about Greece’s debt have plagued the market over the past two months.

Friday’s news chilled a rally in U.S. stocks that grew out of rising optimism about the economic recovery.

The Dow has risen for eight straight days, its longest stretch of gains since August. The Dow was down 48 points in Friday afternoon trading. Broader indexes were also down.

In other trading, the yield on 30-year bond that matures in February 2040 fell to 4.57 percent from 4.59 percent. Its price rose 15/32 to 100 28/32.

The yield on the two-year note that matures in February 2012 rose to 0.98 from 0.96 percent. Its price fell 1/32 to 99 26/32.

The yield on the three-month T-bill that matures June 17 was rose to 0.15 percent from 0.14 percent.