Treasurys ease on stronger economic data; Greek debt crisis fuels volatile trade

Treasury prices lose ground in bumpy trading

CHARLOTTE, N.C. — Interest rates edged higher in the bond market Friday as positive jobs data raises expectations about the U.S. economy.

Stock prices fluctuated sharply throughout the day, after the Dow Jones industrials briefly lost nearly 1,000 points in trading Thursday — its largest one-day drop — before recovering two-thirds of its losses.

Markets remained highly volatile as Greece’s debt crisis continues to unfold. The Dow was off 146 points in afternoon trading.

The yield on the 10-year Treasury note rose to 3.44 percent in afternoon trading from 3.40 percent from late Thursday. Its price fell 34.375 cents to $101.5625.

The yield on the 10-year note, which matures February 2020, is linked to rates on mortgages and other consumer loans. It has dipped over the past month after briefly rising to 4 percent in April, its highest level since June.

Market participants have been worried that Greece could default on its debt and that the trouble there would spread to other parts of Europe, including Spain or Portugal. There is also uncertainty about whether a $140 billion aid package for Greece will stem the growing debt crisis.

Those concerns remained Friday, and but upbeat economic news hurt Treasury prices and helped interest rates. Bond prices move in the opposite direction as their yields.

The Labor Department reported that employers added 290,000 jobs in April, far more than economists expected and the biggest jump in four years. However the jobless rate rose to 9.9 percent from 9.7 percent as more people looked for work.

In other trading, the yield on the 2-year note that matures in April 2012 rose to 0.83 percent from 0.80 percent, while its price fell 6.25 cents to $100.34375.

The yield on the 5-year note that matures in April 2015 rose to 2.18 percent from 2.17 percent. Its price fell 6.25 cents to $101.50.

The yield on the 30-year bond that matures in February 2040 rose to 4.27 percent from 4.21 percent. Its price fell $1.21875 to $105.875.

The yield on the three-month Treasury bill that matures August 5 rose to 0.13 percent from 0.10 percent.